July 2022 Dividend Income Report

July 2022 Dividend Income Report

Quarter 2 of 2022 is well past over and I haven’t made an update on the dividend income report since March.

I want to say I have been very busy for the last so many months and did so much fun stuff over the summer that I didn’t have the time at all to do the dividend income report. There is some truth to it, I have been a bit busy focusing on other things, had some fun over the summer, and tried to survive the hot summer without melting. 

The truth is I still had time to do these and procrastinated a little bit which turned into a bit more and every time I think of doing it, I just picture the mountain of income reports in front of me which just discouraged me from doing anything.

I knew the longer I put this off, the worse it will be to climb this mountain. This is me getting back to it and just dealing with it instead of waiting another month even though the end of August is not too far away. But to make all of this sound better, I am just going to say that I took a nice long summer break.

With all of that being said, this is not an income report just for July but will have to make up for all the ones I missed. To achieve this, this is going to be a bit numbers heavy with dividends broken down for each month, but I will skip out on the intricate details of dividend increases and how the dividends compare against the same time last year for each stock.

I will however have the final dividend totals and a comparison chart comparing it to last year so you will have an overall picture of the performance this year vs last year.

Dividends for April 2022

CompanyTickerDividend amount
Iron MountainIRM$9.90
Seagate TechnologySTX$5.60
Franklin ResourcesBEN$2.03
Occidental PetroleumOXY$13.65
Cardinal HealthCAH$0.49
MedtronicMDT$1.26
Micron TechnologyMU$1.80
Cisco SystemsCSCO$0.38
AltriaMO$24.30
Annaly Capital ManagementNLY$19.80
Invesco S&P 500 High Div Low Volatility ETFSPHD$0.14

Total dividends for April 2022 were $79.35 and April 2021 were $76.18. This is a small 4.2% increase year over year.

Dividends for May 2022

CompanyTickerDividend amount
General MillsGIS$1.53
VerizonVZ$2.56
AT&TT$27.87
CVS HealthCVS$7.70
AppleAAPL$0.92
AbbVieABBV$18.33
NokiaNOK$2.08
Texas InstrumentsTXN$1.15
Sirius XMSIRI$0.26
CitigroupC$0.51
Helmerich & PayneHP$0.25
Invesco S&P 500 High Div Low Volatility ETFSPHD$0.14

Total dividends for May 2022 were $63.30 and for May 2021 were $54.56. This is a nice 16% increase year over year.

Dividends for June 2022

CompanyTickerDividend amount
FordF$1.00
Wells FargoWFC$1.25
InvescoIVZ$6.94
Valero EnergyVLO$0.98
Archer-Daniels-MidlandADM$3.60
Discover FinancialDFS$0.60
Exxon MobilXOM$0.88
TargetTGT$3.60
WalgreensWBA$6.21
3MMMM$7.45
Kinross GoldKGC$0.30
Bath & Body WorksBBWI$3.40
Kraft HeinzKHC$1.20
ShellSHEL$0.50
Gilead SciencesGILD$1.46
Simon PropertySPG$1.70
Invesco S&P 500 High Div Low Volatility ETFSPHD$0.14

Total dividends for June 2022 were $41.21 and for June 2021 were $34.80. This is a nice 18.4% increase year over year.

Dividends for July 2022

CompanyTickerDividend amount
Iron MountainIRM$9.90
Seagate TechnologySTX$5.60
AltriaMO$24.30
Occidental PetroleumOXY$0.65
Franklin ResourcesBEN$2.03
MedtronicMDT$1.36
Cardinal HealthCAH$0.50
Micron TechnologyMU$2.07
Cisco SystemsCSCO$0.38
Annaly Capital ManagementNLY$19.80
Invesco S&P 500 High Div Low Volatility ETFSPHD$0.14

Total dividends for July 2022 were $66.73 and for July 2021 were $64.97. This is a small 2.7% increase year over year.

Dividend amount by month

Year to date end of July 2022 totals $548.77 and the same time last year was at $404.36. An impressive increase of 35%.

March 2022 Dividend Income Report

Quarter 1 of 2022 is over and now we are onto looking towards Q2 of 2022. This also brings about the topic of looking at March dividends.

March, June, September and December cycle of dividends is usually the worst for me. I had mentioned this in my December income report as well. This March however has been a welcome surprise and didn’t follow the same trend.

This March has been the best month ever in dividend performance. I crossed the $100 mark for the first time so definitely a big milestone.

So overall the dividends totaled to $142.58 from 18 different companies. Most of the credit for it goes to the special dividend by Rocket companies pulling in $102.19. The special dividend from rocket was $1.01 per share paid out on March 22nd.

Dividend amounts by company

Here is the breakdown of dividends by each company.

CompanyTickerDividend amount
Well FargoWFC$1.25
FordF$1.00
Archer Daniels MidlandADM$3.60
InvescoIVZ$6.29
ValeroVLO$0.98
DiscoverDFS$0.50
Bath & Body WorksBBWI$3.40
TargetTGT$3.60
Exxon MobilXOM$0.88
WalgreensWBA$6.21
3MMMM$7.45
RocketRKT$102.19
Kinross GoldKGC$0.30
Kraft FoodsKHC$1.20
ShellSHEL$0.48
Gilead SciencesGILD$1.46
Invesco S&P 500 High Dividend Low Volatility ETFSPHD$0.14
Simon PropertySPG$1.65

There were 5 companies with dividend increases.

  • Wells Fargo dividend increased by 25%. Dividend was $0.20 per share in December and this time around was $0.25 per share.
  • Archer Daniels Midland dividend went up from $0.37 to $0.40 which is an increase of about 8.1%.
  • A massive increase 33.3% dividend in Bath & Body Works. Dividend used to be $0.15 and now its $0.20.
  • 3M had a dividend increase of 1 penny bringing it up to $1.49 per share. An increase of less than 1%.
  • Gilead science increased dividends by 2.8%, an increase of 2 cents per share in dividends.

Dividend amount by month

My previous dividend income reports did not have the amounts for January to March 2021. I went back and found my old statements to complete it for the whole 2021 year. This is really going to help with the year over year comparisons and it also makes the chart look complete.

Year over year dividend increase of a humongous 337%. The chances of seeing this level of dividends next March is probably very slim. Perhaps a more appropriate way to look at it would be by excluding the special dividend from Rocket. Year over year growth was 24% even with the special dividend removed which is still very good. 

February 2022 Dividend Income Report

Another month down and it’s time to look at February dividends. 

First feeling I got when I looked at my brokerage statement was a bit of a shock (in a good way). February dividends were above the $80 mark and I haven’t hit that number ever, so I thought there must  be a mistake. Good for me there is no mistake but I had set up a recurring purchase in AT&T and didn’t think too much into it.

Alright so for February, a total of $88.86 from 12 different companies. 

  • CVS increased its dividend by 10% and now the dividend is $0.55 per share. It was $0.50 last time around.
  • ABBV dividend increased by 8.5% and now is at $1.41 per share. This is a 11 cent increase per share in dividends.
  • I have listed a separate line item for Sirius XM. First line is for the regular dividend disbursement. The second line is for the one time special dividend that paid out $0.25 per share. This link has more details about the special dividend.

AT&T (T) – $52.23

General Mills (GIS) – $1.53

Verizon (VZ) – $2.56

CVS Health (CVS) – $7.70

Medtronic (MDT) – $0.32

Texas Instruments (TXN) – $1.15

Apple (AAPL) – $0.88

AbbVie (ABBV) – $18.33

Citibank (C) – $0.51

Sirius XM (SIRI) – $0.26

Sirius XM (SIRI) – $3.00

Helmerich & Payne (HP) – $0.25

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.14

How to Find Your Regions Bank Routing Number

Knowing your Regions Bank routing number will come in handy and is probably an absolute must when you are trying to automate your finances. Your Regions Bank is based on where you opened your account and what type of transaction you are making.

Regions Bank Routing number by state

What is a Routing Number?

A routing number is a nine digit code that is assigned to a bank or financial institution. The routing number system for banks was created in 1910 by the American bankers association (ABA). It was created to show which branch of the bank was responsible for paying a check written by a customer. It is used to process checks and make transactions.

A Routing number is referred to by a few different names but they all pretty much mean the same thing. The few different names are ABA Routing Number, Transit Number, ABA Number, Routing transit number, bank routing number.

Where to find your Routing Number

You can find your routing number at the bottom left corner of your check, right next to the account number. Most of us don’t have a checkbook anymore or don’t know where it is but there is no need to worry as long as you have signed up for online banking which is something almost all of us have these days. You can easily find your routing number from the account page once you have logged in.

Routing numbers are not exactly a secret and don’t have to be kept confidential. So you can easily find it posted on the bank’s website most of the time.

Image from Bank of America Corporate Website

When is a routing number used

There are going to be several situations where you are going to be asked for your routing number. Here is a few of them

  • For direct deposit from your employer to your bank account.
  • Transferring money between accounts – like transferring money between your checking and savings account.
  • Setting up automatic payment of bills from your bank account.
  • For direct deposit for tax returns
  • Making wire transfers

Routing Number Format

A routing number is a 9 digit unique code to each financial institution but is there any meaning to it? Does the 9 digit code have any meaning? It is broken down into four components actually.

The first two digits indicate the type of financial institution.

The second two digits indicate the Federal reserve bank district branch.

The next four digits show the financial institution where the checking account is held.

The last one digit shows the single check number

Can a bank have more than one routing number?

Yes, a bank can have multiple routing numbers. Routing numbers can differ based on the kind of transaction. The routing number you see on the bottom right corner of your check is the ABA routing number or your checking routing number. This is the routing number you will use if you want to order new checks.

Another routing number that is way more prevalent is the ACH routing number. ACH routing number stands for automated clearing house routing number and it is meant for electronic transactions between financial institutions which are performed by third party clearinghouses. In many cases, I have seen the ACH routing number is the same as the ABA routing number so there is not much to worry about. However, it doesn’t hurt to make sure that they are the same before proceeding with any financial transactions. You can always call your bank to verify this.

On the other hand wire transfers usually have a different routing number. Wire transfers are direct transactions between financial institutions and skips the third party clearinghouse used in ACH transfers. Since the middle man is avoided, these transactions are usually quick and completed within hours. The fast transaction comes at a cost, usually banks charge you upwards of $25 to complete a wire transfer. This should only be reserved for large amounts or transactions that have to be completed in a timely fashion. All this being said, Wire transfers usually have a different routing number from what I have seen. Call your bank to get the right routing number for wire transfers.

January 2022 Dividend Income Report

2022 has started off with a bang and not a good kind of bang. The market was down almost 6% in January alone. Considering the performance that we have gotten used to from the last two years, an almost 6% move is pretty significant. Months like this are when you can really rely on dividends to boost your overall returns.

Now onto the January performance – a total of $66.74 in dividends from 11 different companies.

There were two companies that had dividend increases.

First one is Seagate technology that raised its dividend by about 4.4%. New dividend amount is $0.70 per share and it used to be $0.67 per share.

Second increase is from Franklin resources, raised their dividend to $0.29 from $0.28 for a 3.5% increase.

Here are the dividend amounts by each company for January 2022.

Seagate Technology (STX) – $5.60

Iron Mountain (IRM) – $9.90

Altria (MO) – $24.30

Occidental Petroleum (OXY) – $1.05

Medtronic (MDT) – $1.26

Franklin Resources (BEN) – $2.03

Cardinal Health (CAH) – $0.49

Micron (MU) – $1.80

Cisco Systems (CSCO) – $0.37

Annaly Capital Management (NLY)  – $19.80

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.14

4 Stocks for Monthly Income with yearly dividend increases

It’s pretty common for people to look into dividend stocks if they’re looking for monthly income. This is especially true for people who are retired, who are nearing retirement and the early retirement FIRE movement folks.

Dividends are the portion of the profits that’s paid out to its shareholders on a regular basis. Buying stock in the company makes you a shareholder and investor. Shareholders and investors terms are used interchangeably a lot. The dividend amount and how often they pay are usually determined by the company. Majority of the companies pay every three months.

This is great but what if you use dividends as your primary source of income to live every day. Or you’re looking for some passive income every month. This is where monthly income from dividend stocks comes into play.

Here’s a list of 4 companies that pay dividends every month.

  1. Realty Income (O)
  2. Main Street Capital (MAIN)
  3. SL Green Realty (SLG)
  4. STAG Industrial (STAG)

There are more companies that give a monthly income but some lack consistency, some don’t have a long history of paying dividends. The criteria I used to filter them down are –

  1. Companies paid dividends for around 5 years or more.
  2. No missed dividend payment during the 5 year or more time frame.
  3. Increased dividend payments over time.

Companies fitting these criteria gives a certain level of confidence as it shows longevity, consistency and commitment to their track record. This is particularly important because we have no control over the dividend policy of the company. You have to use the information that’s available online to determine whether these companies deserve your investment.

Most of the companies in this list are REITs (Real Estate Investment Trust). REITs are companies that own real estate properties and produce income by renting or leasing out their property.

The business model of these REITs on a very basic level is very much like you buying a house and renting out to make a small profit after paying your mortgage, property tax and maintenance. On a larger scale these are big corporations that have access to a lot of money and can buy big commercial properties and rent them out to other large corporations for lease agreements that are in excess of 5 years. 

Slight difference would be that they specialize in long term leases under a net lease agreement.

Here is a little bit more information about each of these companies.

1. Realty Income (O)

Realty Income is a REIT that focuses on commercial properties under a long term net lease agreement. A net lease agreement means that the renter is responsible for paying a portion or all the property taxes, maintenance costs etc. This is like having a rental property without any of the tenants problems.

Realty Income is so proud of paying dividends on a monthly basis that their company tagline is “ The Monthly Dividend Company”. Realty Income definitely has their investors in mind and know that people are mostly buying their stock for the monthly dividend. Their home page provides details on how the stock has performed since being listed in NYSE and how long they have paid dividends. I found this on Realty Income home page.

Dividend Metrics

  • Current Dividend Yield: 4.26%
  • Dividend per share monthly: $0.247
  • Dividend per share yearly: $2.96
  • 10 year Dividend Growth rate: 4.99%
  • Years paying dividend with increases: 28

Looking back to the last 10 years they have raised their dividend by an average of 4.99% on a yearly basis. Easy way to look at it is if you got $100 in dividends the first year, the second year you received close to $105 in dividends. The third year would be 5% on top of the $105 and so on. This is pretty good in my opinion since it’s above the regular inflation rate of about 2%.

Seeing an average of 4.99% annual dividend growth rate might seem very small and unimpressive because well it’s just 4.99%. Monthly dividend per share for Realty Income in 2011 was $0.141, 2016 was $0.203 and 2021 was $0.247. 

From 2011 to 2016 – an increase of 44.0% in dividend payout over a span of 5 years. From 2011 to 2021 – a massive increase of 75.2%. 

What’s really important to understand from this is that you can only enjoy these massive dividend increases if you have been invested in the stocks for 5 or 10 years. The 5 year and 10 year difference also demonstrates the need for being invested in dividend stock for a long period of time. The longer you are invested in a stock that raises their dividends regularly, the better you will do over time. 

Not being able to see the impact of what a 5% annual growth rate is probably the reason why it’s difficult for people to grasp onto the concept of the power of compounding, but that’s a topic for another day.

2. Main Street Capital (MAIN)

This is the only company on the list that is not a REIT. Main Street Capital is an investment firm that provides long term debt and financing to lower middle market and middle market companies. That’s just a fancy way of saying providing loans to companies with annual sales up to $1 billion.

Main Street Capital has found a nice sweet with the companies they are helping out with loans. The companies they are helping out are usually too big to get any loans from the SBA (Small Business Administration) and at the same time too small to get any consideration by Wall Street. Main Street Capital as their company name is pretty smart branding if you think about it.

Dividend Metrics

  • Current Dividend Yield: 6.0%
  • Dividend amount monthly: $0.215
  • Dividend amount yearly: $2.58
  • 10 year Dividend Growth rate: 4.94%
  • Years paying dividend with increases: 11

After reading through Realty Income’s 10 year dividend growth rate of 4.99% and further breakdown of the dividend amounts in 2011 vs 2016 vs 2021, I don’t think there is a need to have the same breakdown for each company. You get the general idea behind it.

I found something very interesting about their dividend policy. They have a very conservative dividend payout on a monthly basis and have a special dividend like a bonus paid out 2 times a year. This was cut for 2020 for obvious reasons. I like that they try to be safe with this so when they have a difficult year like 2020, they are not looking to cut or pause their regular monthly dividends. The $2.58 dividend is without the special dividends so once business picks up again, the total dividends will be closer to $3.00 per share a year.

3. SL Green Realty (SLG)

SL Green Realty is another REIT. It is the largest office space landlord in Manhattan and its primary focus is to acquire more properties in Manhattan and maximize value.

I am not very sure of investing in a office space focused landlord in Manhattan with all the work from home. 

SL Green Realty is a very new player in the monthly dividend game. They have had dividends since 1997 but they always paid on a quarterly basis until recently. The switch to monthly dividends occurred in March 2020. Dividends since 1997 shows a good track record but that is very deceiving. SGL fell on some hard times during the financial crash and cut their dividends to $0.1 every quarter until 2010. From 2010 onwards they have steadily raised their dividends to $0.303 every month in 2021. To make this a fair comparison, calculating the dividends on a monthly basis they have raised it from $0.035 to $0.311 over 10 years. That’s a huge 888% increase in dividends over 10 years.

Dividend Metrics

  • Current Dividend Yield: 5.18%
  • Dividend amount monthly: $0.311
  • Dividend amount yearly: $3.73
  • 10 year Dividend Growth rate: 24.57%
  • Years paying dividend with increases: 11

4. STAG Industrial (STAG)

STAG Industrial is another REIT. They focus on industrial and logistics properties – think of warehouses and distribution centers for all the online shopping you do. This is one of the companies I can think of that has done extremely well during the pandemic, especially considering that Amazon is their biggest tenant and rents about 40% of their properties.

Similar to SL Green Realty, they also paid dividends on a quarterly basis and slowly transitioned to monthly dividends in October 2013.

Dividend increase for STAG industrial is quite small and you can’t expect a big dividend hike if their history is any indication. Dividend increases have been $0.001 every year that you start seeing in January of the new year. basis every year since 2015. The tiny dividend hike is the disappointing part of owning STAG stock but I think the future is very bright for them since their main properties are distribution centers and warehouses. eCommerce sales are only going to go up from here so they are well positioned to take advantage of that. 

Dividend Metrics

  • Current Dividend Yield: 3.48%
  • Dividend amount monthly: $0.121
  • Dividend amount yearly: $1.45
  • 5 year Dividend Growth rate: 0.86%
  • Years paying dividend with increases: 8

Conclusion

You might get the impression that I am suggesting to invest in all 4 of them. My suggestion would be to pick one or two from this list based on how you think their future is going to look like. The performance of these stocks for the last 10 years only goes so far and nobody can predict the future.

Each of these have their own pros and cons. If I had to pick two from this list I would put Realty Income first because they have paid dividends for a really long time and then I would take STAG industrial because I believe they are in an industry that has a lot of potential growth.

December 2021 Dividend Income Report

2021 is over and it’s time to look at the December 2021 dividends. 

December pretty much follows the September and June cycle of dividends which were the worse performing months in the past. So it’s no big surprise that the December performance is a bit lacking.

Month over month comparisons seem a bit unfair because it’s not like the companies that gave dividends this month were the ones that gave dividends last month. I have settled for a quarter over quarter performance or rather trying to line up the same cycles. I am a bit excited since in a few months I will be able to do month over month comparisons which should take away some of the confusion.

From a dividend performance standpoint, I got dividends from 18 different companies for a total of $39.18 during the month of December. There were dividend increases from two companies and one company restarted dividends after pausing it for a while.

Exxon increased its dividend by a penny going from $0.87 in September to $0.88 in December.

Simon Property increased its dividend by 10% going from $1.50 to $1.65.

Ford restarted their dividend program and gave $0.10 per share in the month of December. Ford had stopped their dividend program in early 2020.

Wells Fargo (WFC) – $1.00

Ford (F) – $1.00

Helmerich & Payne (HP) – $0.25

Invesco (IVZ) – $6.29

Bath & Body Works (BBWI) – $2.55

Archer-Daniels-Midland (ADM) – $3.33

Valero (VLO) – $0.98

Discover (DFS) – $0.50

Exxon Mobil (XOM) – $0.88

Walgreens (WBA) – $6.21

Target (TGT) – $3.60

3M (MMM) – $7.40

Kinross (KGC) – $0.30

Kraft Heinz (KHC) – $1.20

Royal Dutch Shell (RDS.A) – $0.48

Gilead (GILD) – $1.42

Simon Property (SPG) – $1.65

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.14

November 2021 Dividend Income Report

Hey, look at that. I am doing the monthly dividend income report at a more reasonable time compared to the previous months. Hoping this is a new beginning where I am much better at doing these. I wouldn’t bet on it just yet, not until I can string a few months together. 

Let’s take a look at how November was, a total of $54.84 in dividends from 10 different companies.

No dividend decreases from the last time around. I am comparing it against the August 2021 dividends since that is how the quarterly cycles work out. Definitely good news.

To make this better there were 3 dividend increases.

Verizon dividend increased by a tiny smidge over 2%. Dividend per share went from $0.627 to $0.64 per share.

Texas Instruments by a whopping 12.7%. It was $1.02 in August and November was $1.15.

And finally, Sirius XM dividend increased from $0.015 to $0.022 for an increase of 47%.

General Mills (GIS) – $1.53

Verizon (VZ) – $2.56

AT&T (T) – $23.92

CVS Health (CVS) – $7.00

Apple (AAPL) – $0.88

Texas Instruments (TXN) – $1.15

AbbVie (ABBV) – $16.90

Citibank (C) – $0.51

Sirius XM (SIRI) – $0.26

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.13

How to Find your Wells Fargo Routing number

Knowing your Wells Fargo routing number will come in handy and is probably an absolute must when you are trying to automate your finances. Your Wells Fargo routing number is based on where you opened your account and what type of transaction you are making.

Wells Fargo Routing number by state

What is a Routing Number?

A routing number is a nine-digit code that is assigned to a bank or financial institution. The routing number system for banks was created in 1910 by the American bankers association (ABA). It was created to show which branch of the bank was responsible for paying a check written by a customer. It is used to process checks and make transactions.

A Routing number is referred to by a few different names but they all pretty much mean the same thing. The few different names are ABA Routing Number, Transit Number, ABA Number, Routing transit number, bank routing number.

Where to find your Routing Number

You can find your routing number at the bottom left corner of your check, right next to the account number. Most of us don’t have a checkbook anymore or don’t know where it is but there is no need to worry as long as you have signed up for online banking which is something almost all of us have these days. You can easily find your routing number from the account page once you have logged in.

Routing numbers are not exactly a secret and don’t have to be kept confidential. So you can easily find it posted on the bank’s website most of the time.

Image from Bank of America Corporate Website

When is a routing number used

There are going to be several situations where you are going to be asked for your routing number. Here is a few of them

  • For direct deposit from your employer to your bank account.
  • Transferring money between accounts – like transferring money between your checking and savings account.
  • Setting up automatic payment of bills from your bank account.
  • For direct deposit for tax returns
  • Making wire transfers

Routing Number Format

A routing number is a 9 digit unique code to each financial institution but is there any meaning to it? Does the 9 digit code have any meaning? It is broken down into four components actually.

The first two digits indicate the type of financial institution.

The second two digits indicate the Federal reserve bank district branch.

The next four digits show the financial institution where the checking account is held.

The last one digit shows the single check number

Can a bank have more than one routing number?

Yes, a bank can have multiple routing numbers. Routing numbers can differ based on the kind of transaction. The routing number you see on the bottom right corner of your check is the ABA routing number or your checking routing number. This is the routing number you will use if you want to order new checks.

Another routing number that is way more prevalent is the ACH routing number. ACH routing number stands for automated clearing house routing number and it is meant for electronic transactions between financial institutions which are performed by third party clearinghouses. In many cases, I have seen the ACH routing number is the same as the ABA routing number so there is not much to worry about. However, it doesn’t hurt to make sure that they are the same before proceeding with any financial transactions. You can always call your bank to verify this.

On the other hand wire transfers usually have a different routing number. Wire transfers are direct transactions between financial institutions and skip the third party clearinghouse used in ACH transfers. Since the middle man is avoided, these transactions are usually quick and completed within hours. The fast transaction comes at a cost, usually banks charge you upwards of $25 to complete a wire transfer. This should only be reserved for large amounts or transactions that have to be completed in a timely fashion. All this being said, Wire transfers usually have a different routing number from what I have seen. Call your bank to get the right routing number for wire transfers.

How to Find Your Bank of America Routing Number

Knowing your Bank of America routing number will come in handy and is probably an absolute must when you are trying to automate your finances. Your Bank of America is based on where you opened your account and what type of transaction you are making.

Bank of America Routing number by state

What is a Routing Number?

A routing number is a nine digit code that is assigned to a bank or financial institution. The routing number system for banks was created in 1910 by the American bankers association (ABA). It was created to show which branch of the bank was responsible for paying a check written by a customer. It is used to process checks and make transactions.

A Routing number is referred to by a few different names but they all pretty much mean the same thing. The few different names are ABA Routing Number, Transit Number, ABA Number, Routing transit number, bank routing number.

Where to find your Routing Number

You can find your routing number at the bottom left corner of your check, right next to the account number. Most of us don’t have a checkbook anymore or don’t know where it is but there is no need to worry as long as you have signed up for online banking which is something almost all of us have these days.. You can easily find your routing number from the account page once you have logged in.

Routing numbers are not exactly a secret and don’t have to be kept confidential. So you can easily find it posted on the bank’s website most of the time.

Image from Bank of America Corporate Website

When is a routing number used

There are going to be several situations where you are going to be asked for your routing number. Here is a few of them

  • For direct deposit from your employer to your bank account.
  • Transferring money between accounts – like transferring money between your checking and savings account.
  • Setting up automatic payment of bills from your bank account.
  • For direct deposit for tax returns
  • Making wire transfers

Routing Number Format

A routing number is a 9 digit unique code to each financial institution but is there any meaning to it? Does the 9 digit code have any meaning? It is broken down by four components actually.

The first two digits indicate the type of financial institution.

The second two digits indicate the Federal reserve bank district branch.

The next four digits show the financial institution where the checking account is held.

The last one digit shows the single check number

Can a bank have more than one routing number?

Yes, a bank can have multiple routing numbers. Routing numbers can differ based on the kind of transaction. The routing number you see on the bottom right corner of your check is the ABA routing number or your checking routing number. This is the routing number you will use if you want to order new checks.

Another routing number that is way more prevalent is the ACH routing number. ACH routing number stands for automated clearing house routing number and it is meant for electronic transactions between financial institutions which are performed by third party clearinghouses. In many cases, I have seen the ACH routing number is the same as the ABA routing number so there is not much to worry about. However, it doesn’t hurt to make sure that they are the same before proceeding with any financial transactions. You can always call your bank to verify this.

On the other hand wire transfers usually have a different routing number. Wire transfers are direct transactions between financial institutions and skips the third party clearinghouse used in ACH transfers. Since the middle man is avoided, these transactions are usually quick and completed within hours. The fast transaction comes at a cost, usually banks charge you upwards of $25 to complete a wire transfer. This should only be reserved for large amounts or transactions that have to be completed in a timely fashion. All this being said, Wire transfers usually have a different routing number from what I have seen. Call your bank to get the right routing number for wire transfers.