The talk is that banks will raise dividends and on this news financial companies have decided to push stock indexes higher on Tuesday. B of A’s head CEO Brian Moynihan spoke to investor’s at a meeting and told them the bank could possibly earn more money over the upcoming years because of their business stabilization. B of A has made gains of up to 4.7% and this is the best gain of the 30 stocks that make up the Dow Jones Industrial average.
If this is the case, analysts believe that many banks will follow suit and all raise their dividends as well. US banks had slashed dividends in 2008 because of the major US financial crises. The financial shares in the S&P 500 stock index has raised over 2.2% over this news and this could possibly trigger more of the same in the upcoming days.