Bank of America Preferred Stock Yielding High Returns Amid Market Fluctuations

On Thursday, Bank of America Corp’s 4.125% Depositary Shares Non-Cumulative Preferred Stock Series PP (Symbol: BAC.PRP) offered investors a yield exceeding 5.5%, based on its quarterly dividend, which is annualized at $1.0312. The stock traded as low as $18.74 during the day.

Comparative Yield Analysis

In comparison, the average yield in the “Financial” preferred stock category stands at 6.49%, highlighting a notable difference. Furthermore, as of the last close, BAC.PRP was priced at a 24.68% discount to its liquidation preference amount, while the average discount in the “Financial” sector is only 6.28%. It’s important for potential investors to recognize that these shares are not cumulative, meaning if a dividend payment is missed, Bank of America is not obligated to make up that payment before distributing common dividends.

The chart below illustrates the one-year performance of BAC.PRP shares compared to BAC:

Dividend History Examined

Below is a chart showing the historical dividend payments for Bank of America Corp’s 4.125% Depositary Shares Non-Cumulative Preferred Stock Series PP:

Free Report: Top 8%+ Dividends (Paid Monthly)

In Thursday’s trading session, Bank of America’s preferred shares (BAC.PRP) saw a decrease of about 0.2%, while the common shares (Symbol: BAC) declined approximately 0.9%.

For Further Insights:

• IEI Videos
• Funds Holding SFLO
• OFC Shares Outstanding History

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.