Bank of America Series 5 Preferred Stock Exceeds 6% Yield Threshold

On Tuesday, shares of Bank of America’s Floating Rate Non-Cumulative Preferred Stock, Series 5 (BML.PRL), yielded over 6% based on a quarterly dividend of $1.0941, with trading prices dipping as low as $18.17. In comparison, the average yield for preferred stocks in the “Financial” category stands at 6.73%. As of the last close, BML.PRL was trading at a 21.92% discount to its liquidation preference, significantly higher than the category average discount of 12.41%.

As of Tuesday’s trading session, BML.PRL was down approximately 0.6%, while Bank of America’s common shares (BAC) rose by about 1.1%. Investors should note that BML.PRL shares are non-cumulative, meaning missed dividend payments do not accumulate for repayment before common dividends are resumed.