Bank of America's Preferred Stock, Series E Yield Pushes Past 4.5%

By
A A A

In trading on Monday, shares of Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series E (Symbol: BAC.PRE) were yielding above the 4.5% mark based on its quarterly dividend (annualized to $0.9889), with shares changing hands as low as $21.96 on the day. This compares to an average yield of 5.77% in the "Financial" preferred stock category, according to Preferred Stock Channel . As of last close, BAC.PRE was trading at a 11.20% discount to its liquidation preference amount, versus the average discount of 1.19% in the "Financial" category. Investors should keep in mind that the shares are not cumulative , meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.

The chart below shows the one year performance of BAC.PRE shares, versus BAC:

Performance Comparison Chart


Below is a dividend history chart for BAC.PRE, showing historical dividend payments on Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series E:

BAC.PRE+Dividend+History+Chart

In Monday trading, Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series E (Symbol: BAC.PRE) is currently up about 0.7% on the day, while the common shares (Symbol: BAC) are down about 6.3%.



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



This article appears in: Investing , Investing Ideas

Referenced Stocks: BAC.PRE , BAC

BNK Invest

BNK Invest

More from BNK Invest:

Related Videos

Don't Pay Up to Play REITs
Don't Pay Up to Play REITs          

Stocks

Referenced

Most Active by Volume

66,375,734
  • $93.45 ▼ 13.83%
46,523,109
  • $17.72 ▲ 0.57%
42,842,254
  • $7.155 ▲ 5.69%
38,575,547
  • $7.455 ▲ 4.85%
38,252,325
  • $15.47 ▲ 8.87%
33,254,539
  • $112.90 ▲ 1.00%
31,707,771
  • $104.55 ▲ 0.22%
31,562,604
  • $4.215 ▲ 1.32%
As of 12/22/2014, 03:59 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com