Boston, MA 06/19/2014 (wallstreetpr) – A day after a New York appellate court had rejected financial services provider Bank of America Corp (NYSE:BAC)’s appeal to face $1 billion worth of lawsuit over mortgages, the bank had declared a regular dividend to its shareholders and its preferred stockholders.
Dividend
Bank of America Corp (NYSE:BAC) disclosed that its board had maintained the quarterly dividend rate of ten cents a share payable on June 30 to the shareholders whose name appear on the record date of June 24. This meant that the annual dividend is 40 cents a share and represents 5% as dividend payout ratio.
The quarterly dividend offers a yield of 0.3% and the average yield over a five-year period also remains the same.
Bank of America has also announced a quarterly cash dividend of $1.75 a share on the B Series Cumulative Redeemable Preferred Stock carrying an interest rate of 7%. The dividend will be payable on July 25 to the preferred stockholders’ name as on July 11.
Similarly, the financial services provided had declared a quarterly cash dividend of $18.125 a share on the Series L Non-Cumulative Perpetual Convertible Preferred Stock carrying an interest rate of 7.25%. The dividend will be payable on July 30 to its shareholders, whose name appear on the record date of July 1.
Resubmits CCAR
The bank revealed that it had resubmitted Comprehensive Capital Analysis and Review or CCAR request of capital actions to the Federal Reserve. The Federal Reserve System’s Board of Governors has a maximum of 75 days to review the bank’s resubmitted CCAR items of the current year, which includes the latest requested capital actions.
Court Reject Appeal
Meanwhile, Bank of America received a set back in its appeal against the 2013 Supreme Court order advising Bank of America Corp (NYSE:BAC) to face the lawsuit worth about $1 billion due to the acquisition of Merrill Lynch’s operations. Two trusts, who were managing mortgages for investors and who owned securities of over $1 billion that are collateralized as junk loans, had taken Merrill Lynch Mortgage Lending to court in 2012 for their alleged misrepresentation.
