Bank of America (NYSE:BAC) Should Boost Dividends in 2011 Says Moynihan

Although some have expressed skepticism over the comments by Bank of America (NYSE:BAC) CEO Brian Moynihan that he sees no reason why the financial institution won't be able to increase dividends next year, he seems to maintain his position.

Even if there is a dividend, it appears that it won't be anything of significance until 2012 or 2013.

While saying “We are going to do it as soon as we can,” Moynihan said he sees the “recurring dividend rate is going to be more of a 30%” of earnings, which would affirm a much smaller rate.

Anyone hoping for a major dividend increase will probably be disappointed in the short term, as Moynihan pointed out he didn't want to make a big move and then have to cut it afterwards because of the need of more capital.

It's unlikely a dividend increase in 2011 would come in the first quarter, as it will take all of that, as far as time goes, to work through the variables and come to a decision.

Bank of America was trading at $11.64, level at $0.00, as of 12:45 PM EST.