How Will Bank Of America (BAC) Stock Be Affected By New Dividend Request to The Fed?

NEW YORK (TheStreet) -- Bank of America Corp. (BAC) has again asked the Federal Reserve to re-approve a five cent per share quarterly dividend, sources say a test of its ability to please investors and appease the Fed at the same time, the Wall Street Journal reports.

The bank received permission from the Fed in March to boost its quarterly payout from one cent a share to five cents. But the bank had to withdraw the plan, which also included a $4 billion share buyback, a month later, after discovering it had miscalculated capital levels, the Journal noted.

The bank submitted its new plan in May and said the overall request was smaller than the one put forth in March but didn't provide any details. 

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The Fed has until roughly August 10 to decide whether to approve the bank's request, the Journal said.

Shares of Bank of America are down -1.47% to $15.37 in early morning trade.

TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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