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REDDIT

Why are American bank dividends so pathetic?

T
Mar 19, 2025 · 20:48

I've assumed bank shares work the same in the US as back home, so I bought a few Bank of America shares for quite a few hundred dollars mind you. They haven't performed very well but it is what it is, I assumed the dividend is at least gonna be quite nice. NOPE. In fact, NO american share, except for maybe Texas Instruments, has decent dividends, IF ANY. Yes, I know there's a "debate" about whether dividends actually matter at all but let's just put that aside for the moment.

Most of the big banks in my home country have an annual dividend of \~10% of the share price. So I expected the BOA share to give me about $4 but it's a laughable 0.26 USD x) What garbage, what is the matter honestly? The bank isn't some tech startup Amazon style that just expects growth over profitability, IT'S A BANK for crying out loud, how can you not expect them to give you a dividend? Sorry for the rant, it's just baffling to me.