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

By: BNK Invest
Posted: 4/28/2014 2:11:00 PM
Referenced Stocks: BAC.PRE;BAC

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%.