Tomahawk, WI 12/23/2013 (BasicsMedia) – Most everyone in and outside Wall Street knows thatBank of America Corp (NYSE:BAC) has so far made a remarkable turnaround. This is good news for shareholders, but again, the bank is not interesting given that since the financial crisis, its dividend payout is stuck at one cent.

So how does one deal with this stock which seems to be going somewhere but no actually going somewhere in terms of dividend payout. A penny dividend to shareholders at this point makes the holders of the stock a little uncomfortable, or even embarrassed. Things are not better considering that the company’s peers have raised their dividends in recent times.

We can see that JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) have been able to raise their dividend. This followed their respective successful applications to Federal Reserve to be allowed to do so. But when BAC tried to make the same request in 2011, it was turned down and the company has been too shy to try Fed again in recent times.

As a result, the company has continued treating its shareholders to $0.01 dividend per share each quarter.

Improved performance

Looking at its performance, Bank of America Corp (NYSE:BAC) is apparently the best performance of the top four banks in the U.S. the company’s revenue and profits have improved significantly and its stock has seen impressive gain, in fact, the highest percentile gain of all the four largest lenders.

So investors dump the stock because of unattractive dividend that nobody has an idea when it will improve, or should they hang in a little longer?

This is one question that is very popular when discussing Bank of America Corp (NYSE:BAC) these days. And it is actually one of the most important for investors seeking to understand the position of the bank. Two factors can be considered in addressing this concern. First, the reason why the bank has not been able to up its dividend and if there is chance to do that in the near-term. Second, how the bank is fairing in its operation and if there could be alternative gains from such plans as share repurchase.

Second attempt at dividend hike

As mentioned earlier, Bank of America Corp (NYSE:BAC) tried to get Fed to approve its dividend hike unsuccessfully about two years ago. In recent times, the company has avoided direct reference to its dividend plans. However, it looks like it could make another application in 2014. If this happens, investors can have their smile, but before then, things will remain in the penny scale.

The future

The company’s CEO Brian Moynihan was been able to plug a lot of financial holes. The reduction of workforce and consolidation of assets are some key tweaks which are helping the company turn profits quarter after quarter.

 As well, the CEO is determined to clean the company complete from the string of lawsuits it’s facing so that it can face the future with undistracted focus on growth.

In this situation, Bank of America Corp (NYSE:BAC) looks headed to returning more value to investors through strong share buyback. This is beside the high dividends if the same is approved by Fed.

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