Bank of America expects a boost in dividend growth in 2026
CNBC••business
Key Points:
- Bank of America forecasts an 8% year-over-year dividend growth in 2026, up from 7% in 2025, citing the S&P 500's historically low dividend payout ratio of 30% and expected strong EPS growth in 2025.
- The firm advises investors to seek companies with above-market but sustainable dividend yields, focusing on the second quintile of dividend yielders in the Russell 1000 to avoid distressed stocks.
- Notable stocks on Bank of America's dividend list include Reynolds Consumer Products (yield ~4%), Macy's (yield 3.2%), Prologis (yield 3.1%), and Exxon Mobil (yield 3.4%), each showing positive earnings or growth prospects and generally favorable
