There is perhaps no company in the past decade that has destroyed shareholder equity quite like Bank of America (BAC) has. It's almost mind-boggling to try and document just how extensive the pain has been for this one-time blue chip holding, which saw steady annual profits of $21 billion in 2006 collapse to annual losses of $2 billion by the end of the financial crisis. Not only did the company wreck its long-term earnings power, but it also heavily diluted its share owners at the worst time possible, in the midst of a crisis. At a time when Bank of America's stock price was careening into the low single-digits, the company was forced to raise capital and doubled the share count from 4.4 billion in 2007 to 8.7 billion in 2009.
We almost always speak in strictly economic terms here on Seeking Alpha, but this mismanagement of the dividend
Complete Story »