Cash out on BAC?

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I have no reason to sell

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hold

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their dividends have been tiny.

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There are indications they will soon apply to the Fed for permission to raise their dividend.

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BAC's PE multiple is around 50x.

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That's the trailing P/E.

Forward P/E is 9.45.

ETA: Full disclosure, I don't own BAC.

I just bought some BAC at the low 11s. I'll be holding for a while. I heard Warren Buffet is all over BAC too. That guy knows what he's doing.

Thanks for the kind words but I'm an amateur compared to others on this board when it comes to analyzing stocks.

I use Charles Schwab but not their website. I downloaded their trading platform called "StreetSmart Edge" which is free, btw. I have all of my stock brokerage accounts with Schwab, which is a requirement to use their StreetSmart software.

It provides a LOT (more than I can use) of realt-time data on stocks and options.

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And can you recommend a few stocks that pay dividends that are under $100 a share.

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I don't recommend any specific stocks. And that follows board rules which protects posters from being suckered by someone doing a pump and dump scam.

You can screen stocks for yourself using the Yahoo Finance page (among others which do the same thing).

You can set certain parameters for your screening process such as minimum ROE, minimum market cap, stock price and dividend levels. It will then give you a list of all the companies which meet all of your screening criteria. Then it's up to you to research the listed companies individually.

Sorry I'm not being more helpful.

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I heard Warren Buffet is all over BAC too.

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He made a five billion dollar investment in BAC during their dark days when some people thought BAC might go bankrupt as a result of their Country Wide Mortgage acquisition and portfolio of sour house loans.

Under the terms of the deal, Berkshire bought $5 billion of preferred stock that pay a 6 percent annual dividend, and receive warrants for 700 million shares that it can exercise over the next 10 years. Bank of America has the option to buy back the preferred shares at any time for a 5 percent premium.

When you hear Uncle Warren talk up BAC don't doubt the fact that he may be interested in protecting his investment....

ETA: Based on today's price of BAC stock, Berkshire's warrants give the $5 billion investment a profit of about $3.5 billion excluding the 6% dividend on the preferred stock. Not a bad return after 2 years.

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Its PE is at around 50 now

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Again that's the trailing PE.

Using the trailing PE as an important investment metric is like driving your car on the interstate by only looking in the rear view mirror. It might be interesting but it can get you killed.