Bank of America Latest to Keep Dividend Flat

NEW YORK (TheStreet) -- Investors hoping for a dividend boost from big banks in the near-term have been doubly disappointed this earnings season.

But as bank stocks have tumbled, the paltry dividend yields have become more attractive, creating an opportunity to buy shares at a discount ahead of distributions in the next couple of months.

Bank of America (BAC) was the latest on Wednesday to maintain its quarterly dividend, at a penny a share for common stock and $1.75 per share for its 7% Series B Preferred. Wells Fargo (WFC) said Tuesday that its payout would be kept steady at a nickel per common share.

JPMorgan Chase (JPM), too, announced on Dec. 8 that its common dividend would remain at 5 cents a share, as would distributions for its four classes of preferred stock. Both Morgan Stanley (MS) and Goldman Sachs (GS) also kept dividends steady -- at 5 cents per share for Morgan holders and 35 cents per share for Goldman's -- when reporting earnings this month.

Citigroup (C) hasn't paid common or preferred stock dividends, apart from that owned by the Treasury Department, in over a year. Management didn't indicate any near-term changes to that policy during the company's quarterly report or presentations either.

Investors had the most reason to be hopeful about a potential boost from JPMorgan, since it had been one of the first to repay bailout funds and appeared to be better capitalized than others. In a report three days ahead of JPMorgan's results, Rochdale Securities analyst Richard Bove said "expectations are high," that the company's payout would double to 10 cents a share. If it didn't, he predicted a stock slump as investors "will question its outlook."