When dividends take the wheel: why Bank of America thinks payouts matter in 2026

The market’s engines have been different lately. Price gains drove much of the S&P 500’s recent roar, but Bank of America’s research team — led by Savita Subramanian — is flagging a shift: dividend growth may pick up in 2026 and start reclaiming its traditional role in total returns. That’s a signal worth listening to if you own stocks for income, total-return compounding, or simply to reduce reliance on multiple expansion.

Why this matters now

• Bank of America’s strategists argue that valuation expansion (higher price-to-earnings multiples) has been a major driver of recent gains — and that this tailwind may fade. When multiple expansion stalls, dividends become a bigger piece of the returns puzzle. (investing.com)
• BofA projects stronger earnings breadth in 2026, and with payout ratios near historic lows for many firms, it expects dividend growth to rise year over year — providing more cash return to shareholders. (m.in.investing.com)
• CNBC highlighted the same theme in its roundup of stocks with payouts that beat the market, anchoring the media coverage that income-focused investors should watch dividend trends as we move into 2026. (archive.ph)

What Bank of America actually said (in plain language)

• The bank sees 2026 as a year when earnings growth broadens beyond a handful of mega-cap winners. That can support rising dividends across sectors. (m.in.investing.com)
• Historically, dividend contributions to total return were much larger than they’ve been in the past decade; reverting toward that longer-run role would meaningfully lift long-term total returns even if price appreciation is muted. (investing.com)

The investor dilemma: chasing growth vs. locking in cash

• If price returns slow, investors either must accept lower total returns or look to other sources of return — dividends are the obvious alternative.
• High dividend yields can cushion downside and provide deployable cash, but they can also mask company-specific risks (e.g., weak cash flow or one-off payouts).
• The smart move is not to fetishize a yield number; it’s to evaluate payout sustainability: earnings coverage, free cash flow, balance-sheet strength, and management’s capital-allocation priorities.

Sectors and stock types to watch (what typically leads when dividends matter)

• Financials: banks and insurers can boost payouts when earnings and capital tests permit — and Bank of America itself has been growing its dividend in recent quarters, illustrating how a healthy bank can combine buybacks and higher payouts. (investor.bankofamerica.com)
• Energy and commodities: mature producers often return excess cash via dividends when commodity markets cooperate.
• REITs and utilities: by design, these businesses distribute a large share of cash flow and tend to be dividend-heavy.
• Mature consumer and industrial companies: lower-growth, cash-rich firms frequently prioritize steady payouts.

(These are general tendencies; any specific company needs case-by-case scrutiny.)

How to think about building an income-aware portfolio for 2026

• Tilt for quality: prioritize companies with consistent cash flow, conservative payout ratios, and intact balance sheets.
• Check payout drivers: are dividends covered by operating cash flow or propped up by asset sales or one-time events? Coverage matters.
• Diversify across dividend sources: combine REITs, select financials, defensives (consumer staples), and high-quality dividend growers rather than concentrating in one sector.
• Reinvest thoughtfully: if your goal is compounding, dividend reinvestment can materially boost long-term returns — a point BofA emphasizes when prices don’t carry the full return load. (investing.com)

A small list of real-world reminders (not stock picks)

• Even large, well-capitalized banks have increased payouts when capital ratios and stress-test results permitted — showing how regulation and capital policy shape dividend outcomes. (investor.bankofamerica.com)
• Media coverage (CNBC and others) is already flagging individual stocks and groups where payouts “beat the market,” reflecting a broader marketplace focus on income as 2026 approaches. (archive.ph)

What to watch next (concrete signals)

• Corporate payout-ratio revisions and published dividend guidance.
• Federal Reserve and macro signals that affect corporate borrowing costs and capital allocation.
• Quarterly earnings breadth: are more companies showing EPS growth (not just the mega caps)? BofA links rising dividend growth to broader earnings strength. (m.in.investing.com)

My take

Dividends aren’t glamorous, but they’re practical. If Bank of America’s call about rising dividend growth in 2026 proves right, investors who prepare now — by favoring payout sustainability and quality — will be positioned to benefit from steadier cash returns even if headline price gains cool. That doesn’t mean abandoning growth, but it does mean giving dividends their due in portfolio planning.

Sources

• Bank of America says dividend growth could be more important going forward — Investing.com (summary of BofA note).
  https://www.investing.com/news/stock-market-news/bofa-raises-sp-500-eps-estimates-for-2025-sees-broader-growth-in-2026-5007499. (m.in.investing.com)

• BofA on dividends and the role of payouts in total returns — Investing.com summary (additional context).
  https://www.investing.com/news/stock-market-news/sp-500-valuation-suggests-12-price-return-over-next-decade-bofa-3685901. (investing.com)

• CNBC roundup that included “Bank of America expects a boost in dividends in 2026. These stocks have payouts that beat the market.” (archived view).
  https://archive.ph/2026.01.03-150009/https%3A/www.cnbc.com/2026/01/03/these-are-the-most-overbought-and-oversold-stocks-in-the-sp-500-as-2026-begins.html. (archive.ph)

• Bank of America investor filing and 2025 capital/dividend context (quarterly filings and presentation materials).
  https://investor.bankofamerica.com/regulatory-and-other-filings/select-sec-filings/content/0000070858-25-000268/bac-20250630.htm. (investor.bankofamerica.com)

Small board, big ambitions: ASUS Pro WS B850M-ACE SE brings workstation features to microATX AM5 builds

The first time you see the Pro WS B850M-ACE SE you do a double-take — the AM5 socket and the DIMM banks are rotated 90°, giving this microATX board an unconventional layout. That visual oddity is a clue: ASUS didn’t just squeeze desktop features into a smaller footprint. They rethought layout and connectivity to make a compact, IT-friendly workstation that pulls a surprising amount of pro-level hardware into a 244 × 244 mm package.

Below I unpack what makes this board interesting, who it’s for, and why that rotated socket matters beyond aesthetics.

Why this release matters now

• AMD’s AM5 platform continues to expand from mainstream desktop into workstation and server-adjacent use. The B850 chipset fills a sweet spot for builders who want modern AM5 features without an E-ATX footprint.
• ASUS targeted this board at compact workstations and small business servers by adding features you usually see on larger or server boards: onboard BMC with IPMI, a U.2 connector, dual high-speed Ethernet (10 Gb + 2.5 Gb), and PCIe 5.0 support.
• With increasing demand for AI/ML inference at the edge and compact creator rigs, dense connectivity (fast NVMe, multi-Gb networking, remote management) matters as much as raw CPU core count.

Eye-catching specs at a glance

• Form factor: microATX (244 × 244 mm).
• Socket/chipset: AM5 with AMD B850 chipset — supports Ryzen 7000/8000/9000 and EPYC 4005 series.
• Memory: 4 × DDR5 DIMM slots, up to 256 GB, EXPO support (OC up to high speeds).
• Expansion/storage: PCIe 5.0 x16 primary slot, two M.2 slots (one PCIe 5.0 x4), MCIO support and an onboard U.2 connector.
• Networking: onboard 10 Gb Ethernet + 2.5 Gb Ethernet, plus a dedicated 1 Gb IPMI/BMC port.
• Management: onboard BMC (AST2600) with IPMI and ASUS Control Center Express for remote monitoring.
• Extras: front USB-C 20 Gbps header, robust 8+2+1 power stages, 24/7 reliability testing.

(Full tech details on the ASUS product page linked below.)

The rotated socket: what it does and why ASUS might have chosen it

• Space optimization: Rotating the CPU socket (and thus orienting the memory slots along a different axis) rearranges the board’s internal real estate. That allows ASUS to add server-grade features — BMC circuitry, a U.2 connector, MCIO, additional LAN ports — without pushing the layout beyond a microATX size.
• Cooler compatibility trade-offs: Most aftermarket coolers assume the CPU orientation found on ATX boards. While standard AIOs and many air coolers will still fit, tight builds or unusual bracket designs could encounter clearance issues. Builders should check cooler compatibility against the board’s layout.
• Cable routing and case fit: The rotated layout changes cable and fan header positions relative to case panels. For compact workstations and bespoke small-form-factor enclosures, that can be an advantage (shorter NVMe/MCIO traces, better airflow zoning) — just confirm the case supports the positioning.
• Serviceability and pro usage: For IT/enterprise customers, being able to cram more I/O and remote management into a smaller board is a net win; the rotated layout is a practical compromise to prioritize features over standard orientation.

Who should consider the Pro WS B850M-ACE SE

• Small business or home lab admins who need remote management (IPMI) but prefer a compact chassis. The onboard BMC and dedicated management NIC let you monitor and administer systems headlessly.
• Creators and AI/ML hobbyists who want high-bandwidth storage (PCIe 5.0 M.2, MCIO, U.2) and multi-gig networking in a small desktop/workstation build.
• Builders constrained by space who still want PCIe 5.0 graphics or accelerators plus enterprise-grade connectivity.
• Not ideal for people who want plug-and-play compatibility with every consumer cooler or who insist on standard ATX layout expectations without checking clearances first.

Trade-offs and things to check before buying

• Cooler fit: verify your CPU cooler (air or AIO bracket) supports the rotated socket or has enough clearance.
• Case compatibility: microATX cases vary; double-check standoff alignment, IO shield area, and whether front-panel USB-C routing lines up.
• U.2 vs modern NVMe priorities: U.2 remains useful for certain enterprise SSDs and hot-swap setups, but many consumer builds will rely primarily on M.2 drives. If you need U.2 specifically, this board is unusually accommodating for its size.
• Remote management complexity: IPMI/BMC is powerful for IT, but it introduces additional configuration and potential security considerations; treat the BMC interface like any network-facing admin service.

How this fits into the broader AM5 & workstation landscape

ASUS is signaling that AM5 isn’t just for full-size enthusiast motherboards. By putting server-grade features into microATX format, they’re acknowledging a market trend: people want workstation capabilities in smaller form factors for edge inference, compact studios, and dense deployments. Expect more OEMs and board makers to explore similar compromises — squeezing IPMI, multi-gig networking, and industrial storage interfaces into smaller boards — especially as AI workloads demand fast local storage and network throughput.

My take

This is one of those “clever engineering” products: it doesn’t radically change performance specs for consumers, but it democratizes workstation features into a compact footprint that actually makes sense for modern workflows. The rotated socket is a pragmatic design choice rather than a gimmick — it unlocks space for the features that matter to IT and pro users. If you’re building a small workstation with remote management or need industrial storage support in a microATX box, this board is worth a close look. If you’re purely a gaming consumer who swaps coolers and cards frequently, the unusual layout means extra homework before purchase.

Practical buying notes

• Expect pricing to be above typical consumer microATX boards because of the embedded BMC, 10 GbE, and industrial connectors. Retail listings show it in the workstation price band.
• Verify BIOS compatibility with your chosen Ryzen or EPYC 4005 CPU (ASUS lists supported families; check the support page for CPU compatibility).
• For IT deployments, plan for BMC security (firmware updates, network segmentation, credential management).

Final thoughts

ASUS’s Pro WS B850M-ACE SE is a tidy example of product differentiation: same AM5 ecosystem, but a different set of priorities. It’s a microATX motherboard built for professionals who need remote management, industrial storage options and high-speed networking without the bulk of a larger board. The rotated socket is simply the engineering price paid to make all that fit — a smart trade for the intended audience, and a sign that motherboards will keep evolving in form as well as function.

Sources

• Pro WS B850M-ACE SE product page — ASUS USA
  https://www.asus.com/us/motherboards-components/motherboards/workstation/pro-ws-b850m-ace-se/

• Pro WS B850M-ACE SE tech specs — ASUS Global
  https://www.asus.com/motherboards-components/motherboards/workstation/pro-ws-b850m-ace-se/techspec/

• Coverage noting the rotated socket and professional orientation — Overclocking.com
  https://overclocking.com/asus-presente-sa-carte-mere-pro-ws-b850m-ace-se/

• Retail and distributor listings with specs and pricing context (B&H Photo example)
  https://www.bhphotovideo.com/c/product/1927258-REG/asus_pro_ws_b850m_ace_se.html

A plow truck, a snapped pole, and a neighborhood offline: what happened in Cleveland Heights

It was one of those small, aggravating disruptions that suddenly remind you how much of modern life runs on invisible lines. On January 2, 2026, a plow or salt truck struck a utility pole in Cleveland Heights and damaged fiber lines that carry internet and phone service for Spectrum customers. The result: pockets of northeast Ohio left without connectivity during a winter afternoon — a sharp inconvenience for remote workers, students, local businesses, and anyone trying to get basic information or call for help.

Why this matters more than a simple “outage” headline

• Internet and phone outages aren’t just about lost streaming or annoyance. They can interrupt work meetings or deadlines, halt online classes, prevent contact with emergency services, and disrupt businesses that depend on card payments or inventory systems.
• Fiber lines are often routed on the same poles that carry electricity and other utilities. Physical damage to a pole can therefore cascade into multiple systems going dark.
• Winter weather makes repairs slower and more dangerous. Crews need safe access, proper equipment, and sometimes coordination with power companies to de-energize lines before they can work.

What we know (the quick facts)

• Date of incident: January 2, 2026.
• Location: Cleveland Heights, northeast Ohio.
• Cause: A plow or salt truck hit a utility pole and damaged fiber lines.
• Company affected: Spectrum (service disruption to Cleveland-area customers).
• Response: Spectrum said crews responded immediately and were working to make repairs. Local news reported the developing situation and advised customers to check for updates. (cleveland19.com)

A closer look at the chain reaction

• A vehicle strikes a pole → pole shifts or breaks → attached fiber and copper lines are pulled or severed → signal loss for downstream customers.
• Even if the physical fiber is only partially damaged, signal quality can drop or intermittent outages can occur until full repairs are completed.
• Utilities and ISPs often must coordinate: electrical crews may need to ensure a safe work environment before telecom technicians can access damaged lines.

How outages hit different people

• Remote workers: missed calls, lost VPN access, inability to join video meetings.
• Students: interrupted online classes, lost assignments or test access during timed exams.
• Small businesses: card machines and POS systems may fail, causing revenue loss.
• Vulnerable households: medical devices that rely on internet/phone service or inability to reach caregivers/emergency responders.
• Community hubs: libraries and warming centers often provide connectivity — when they’re affected, residents lose fallback options.

Practical steps for residents (short, useful checklist)

• Check official outage pages and local news for updates. Spectrum posted that crews were working to restore services; official channels are the best source for timelines. (cleveland19.com)
• Use cellular data as a temporary fallback; if your mobile plan allows, create a hotspot for critical tasks.
• If power is out, conserve mobile battery: lower screen brightness, close unused apps, use low-power mode.
• For prolonged outages, seek local warming centers, libraries, or businesses that still have power and connectivity.
• Report your outage to your provider so they have accurate counts and locations — aggregated customer reports help prioritize repairs.

What this says about infrastructure resilience

This incident is a reminder that our communications infrastructure is vulnerable to everyday accidents — not just cyberattacks or massive storms. As communities and utilities upgrade networks, there’s growing emphasis on:

• Hardening critical poles and rerouting fiber underground where feasible (costly but reduces weather and accident risk).
• Better coordination and mutual-aid agreements between utilities and ISPs to speed safe access for repairs.
• Local contingency planning so residents without backups aren’t left stranded during transient events.

Spectrum and other providers often open public Wi‑Fi access points and issue advisories during wide outages; those measures help, but they’re stopgaps until physical repairs are finished. (spectrumlocalnews.com)

Neighborhood voices

On community forums and local social feeds, residents reported varying outage durations: some saw service restored within hours, others were offline longer. Those firsthand accounts show two things: (1) outage boundaries are often patchy and unpredictable, and (2) people rely on neighborhood networks — checking with neighbors, sharing battery packs, or pooling resources when needed. (reddit.com)

My take

Small incidents like a plow hitting a pole make for big-picture questions. How quickly can essential services be restored when the unexpected happens? Are there better ways to shield critical communications from routine roadway accidents? And how can communities plan so outages don’t become emergencies for vulnerable residents?

Practical investments — from targeted undergrounding in critical corridors to faster inter-agency coordination and community-level backup plans — won’t eliminate risk, but they make neighborhoods more resilient. In the meantime, keep a simple preparedness kit: phone charger, portable battery, and a plan for where to go if connectivity or power goes out.

Sources

• Cleveland Spectrum customers experiencing outages after plow truck hits utility pole — Cleveland 19 News (WOIO).
  https://www.cleveland19.com/2026/01/02/cleveland-spectrum-customers-experiencing-outages-after-plow-truck-hits-utility-pole/ (cleveland19.com)

• Spectrum is assessing outages in northern Ohio because of the winter storm — Spectrum News.
  https://spectrumlocalnews.com/product-pages/nyc/news/2025/12/29/spectrum-outage-winter-storm-ohio (spectrumlocalnews.com)

• Community discussion thread about Spectrum outage in Cleveland — Reddit (r/Cleveland).
  https://www.reddit.com/r/Cleveland/comments/1q26ifn/anyone_with_spectrum_not_have_internet/ (reddit.com)