There is the expectation that BAC will increase its dividend from 0.20 to 0.50 (or slightly above) within the next two years. However, even when modeling in an increase in payout ratio (i.e., annual dividends distributed divided by net income) from its projected 35%-36% in 2018 to 50% long-term, this is only accretive to the stock by 2.4%.If BAC’s current sub-6% return on equity (ROE) endures for the remainder of the projection period (i.e., through the FY2026), BAC comes out to a sub-$8 stock with the payout ratio hike to 50% built in. The market is currently betting on 6% ROE in the near-term, with normalization back into the high-single or low-double digit percentages. But if we assume constant ROE figures, the stock trades accordingly:--Bank of America's (BAC) Return on Equity IssuesBank of America (BAC) Valuation Based on Various ROE Levels (Current)Bank of America (BAC) Price Projection Based on ROE NormalizationValuation of Bank of America (BAC)