Bank of America hits $21.10 a share

Just wait until Bank of America (NYSE:BAC) cuts their dividend, then how low will shares get?

Barron's lowered their outlook on BAC last week.  They now expect BofA's 2008 and 2009 earnings-per-share estimates to $2.20/$3.60 (from $2.70/4.00), largely reflecting continued uncertainty on the credit front and a more-conservative view of structured products/capital markets near term. Our second-quarter 2008 EPS estimate falls to 55 cents from 79 cents. 

Barron's price target droped to $25 (versus $34), which is approximately 2.0 times estimated 2009 tangible book value.

The buzz continues about "if" BofA cuts their dividend but its turning into more of a "when" consensus. 

Other articles on the subject:

Look for Bank of America to chop dividend
Globe and Mail, Canada - Jun 27, 2008

Banking gamble: That fat yield on Bank of America stock
Los Angeles Times, CA - Jun 25, 2008

The lower the stock price falls the more BofA will have to payout, but can they afford the current 8.6% yield?

Sign of the times Masters. At this point, why not wait to see if they cut the dividend, then make your decision.