The bank's initial proposal to increase shares in the second half of the year was turned down, The New York Times reported.
BofA is currently paying one cent per share. Like other big banks, dividends were slashed after the financial meltdown in 2008.
The Fed loosened restrictions on dividends for other big banks that had been put through a second round of financial stress tests, the results of which were revealed Friday.
Soon after the test results were announced, Wells Fargo said it would increase its quarterly dividend rate by 7 cents per share to 12 cents, the Charlotte (N.C.) Observer reported.
JPMorgan Chase also said it would increase dividends and Citigroup said it would begin paying one cent per share.
In a filing with the Securities and Exchange Commission, BofA said, "The corporation will continue to work with the Federal Reserve and intends to seek permission for a modest increase in its common dividend for the second half of 2011, through the submission of a revised comprehensive capital plan to the Federal Reserve."