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Bank of America (NYSE:BAC) provides banking, financial products, and financial services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
It is set to report its Q4 2024 earnings on Jan. 16, 2025. Wall Street analysts expect the company to post an EPS of $0.80, up from $0.70 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $25.04 billion, up from $23.50 billion in the previous year.
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The company’s stock traded at approximately $17 per share 10 years ago. If you had invested $10,000, you could have bought roughly 588 shares. Currently, shares trade at $42.65, meaning your investment’s value could have grown to $25,088 from stock price appreciation alone. However, Bank of America also paid dividends during these 10 years.
Bank of America’s dividend yield is currently 2.45%. Over the last 10 years, it has paid about $5.90 in dividends per share, which means you could have made $3,471 from dividends alone.
Summing up $25,088 and $3,471, we end up with the final value of your investment, which is $28,559. This is how much you could have made if you had invested $10,000 in Bank of America stock 10 years ago. This means a total return of 185.59%. This figure is less than the S&P 500 total return for the same period, which was 232.38%.
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Bank of America has a consensus rating of “Buy” and a price target of $42.62 based on the ratings of 25 analysts. The price target implies 0% potential upside from the current stock price.
On Oct. 15, 2024, the company announced its Q3 2024 earnings, posting net income of $6.9 billion and EPS of $0.81, beating the analyst consensus estimate of $0.77, as reported by Benzinga.
Net income fell 12% year-on-year due to higher provisions for loan losses and rising expenses. Revenue, net of interest expense, increased 1.0% year over year to $25.49 billion, beating the analyst consensus estimate of $25.29 billion. The gains in trading revenue, asset management, and investment banking fees offset the decline in net interest income.
Check out this article by Benzinga, which takes a deep dive into Bank of America’s recent unusual options activity.
Given no expected upside potential, growth-focused investors may not find Bank of America stock attractive. Conversely, the stock can be a good option for income-focused investors, who could benefit from the company’s solid dividend yield of 2.45%.
The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.
Arrived Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in August. The best part? Due to high demand the maximum investment amount is currently $5,000 with a minimum investment of ONLY $100.
Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
This article If You Invested $10,000 In Bank Of America Stock 10 Years Ago, How Much Would You Have Now? originally appeared on Benzinga.com
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