BofA's Dividend to Rise Above Buffett Target for Stock Swap

  • Bank boosting payout after passing Federal Reserve stress test
  • Berkshire holds warrants after $5 billion BofA investment

What Top Berkshire Investor Thinks of Buffett's BofA Bet

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Bank of America Corp. plans to lift its dividend above a level that Warren Buffett said would compel him to convert preferred shares into the lender’s common stock.

The bank said Wednesday that it expects to increase its dividend by 60 percent to 12 cents a quarter -- or 48 cents annually -- after receiving Federal Reserve approval of its capital plan. At that level, it’d be more lucrative for Buffett’s Berkshire Hathaway Inc. to hold common shares than its preferred stake in the Charlotte, North Carolina-based lender.