Bank of America's Preferred Stock, Series L Shares Cross 6.5% Yield Mark

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In trading on Monday, shares of Bank of America Corp.'s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (Symbol: BAC.PRL) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $72.50), with shares changing hands as low as $1110.16 on the day. This compares to an average yield of 5.81% in the "Financial" preferred stock category, according to Preferred Stock Channel . As of last close, BAC.PRL was trading at a 11.86% premium to its liquidation preference amount, versus the average discount of 2.97% in the "Financial" category. It should be noted that the preferred shares are convertible , with a conversion ratio of 20. 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.PRL shares, versus BAC:

Performance Comparison Chart


Below is a dividend history chart for BAC.PRL, showing historical dividend payments on Bank of America Corp.'s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L:

BAC.PRL+Dividend+History+Chart

In Monday trading, Bank of America Corp.'s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (Symbol: BAC.PRL) is currently down about 0.3% on the day, while the common shares (Symbol: BAC) are down about 1.3%.



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 , BAC.PRL

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