Bank Of Americ A Look At America

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Bank of America:
A Look at America’s #2 Bank¬¬¬¬¬¬¬


Finance for Managers
Richard Bristow
Professor Maria Perez
Saint Leo University
February 24, 2017

Since one of the largest positions in my investment portfolio is Bank of America, traded on the NASDAQ under the symbol (BAC), I decided to take and in-depth look at this company and hopefully see for myself why this stock and other financials have performed so well over the past few months. I also hope to educate myself more about BAC and financials in general, so that I can have a more detailed and meaningful conversation with my portfolio manager about why he chose BAC as my largest financial position.

By definition, banks are: “A financial …show more content…

It went on to mention that BAC had been struggling with regulatory changes from the previous administration, but that talk of deregulation by the new Trump administration could help improve BAC’s position moving forward. (The Wall Street Journal, 2017, n.d.).
Now, according to the latest data from Investopedia, BAC’s Price to earnings ratio, (P/E) is 17.56, which is a high, and I like to keep P/E ratios for companies that I invest in at lower than 14, but since a lot of this growth has occurred since my initial investment, I am ok with its high P/E ratio, although BAC may be a stock that needs to be considered for profit taking by any investor who bought this stock prior to last year. Another consideration for a potential BAC investor is the fact that BAC pays a dividend. Before an investor should consider buying or selling a stock, it should always contemplate how dividends should be incorporated in that decision. BAC current pays a 1.44% annual dividend. (Investopedia, 2016, n.d.). While 1.44% may not seem like a lot, it is attractive to me as an investor because that extra percentage can cover a large portion of the fees involved with trading stocks. I think people tend to overlook these important details when considering an investment.
In general BAC and financials have had a really good run and many may seem expensive compared to other investments,

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