PROVIDENCE – It was a good year to be an investor in Citizens Bank and Bank of America Corp.
The two banks were among the 30 companies recognized in a recent article by Kiplinger for “massive” dividend increases in 2019.
Rhode Island-based Citizens Financial Group Inc., parent company for Citizens Bank, saw a 33% spike in its dividend over 2019, ending the fourth quarter with 32 cents per common share, according to the bank’s latest earnings report. The annual dividend yield was 3.5%. The company’s “aggressive” 19% dividend increase mirrors similar jumps in 2018, the article stated.
Bank of America, the second-largest bank in Rhode Island by share of deposits, saw a 20% dividend increase in 2019, with 18 cents per common share at the end of fourth quarter and an annual dividend yield of 2.1%, according to the bank earnings report. The bank has steadily increased its dividend since 2014, when it was 5 cents per share.
The article noted that the banking industry as a whole contributed to many of the year’s largest dividend increases because of permission from government regulators to distribute excess capital to investors.
No other banks from Rhode Island or Bristol County, Mass., were included in the article.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
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