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Bank of America's Preferred Stock, Series 2 Shares Cross 3.5% Yield Mark


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In trading on Wednesday, shares of Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series 2 (Symbol: BML.PRH) were yielding above the 3.5% mark based on its quarterly dividend (annualized to $0.7667), with shares changing hands as low as $21.86 on the day. This compares to an average yield of 5.67% in the "Financial" preferred stock category, according to Preferred Stock Channel . As of last close, BML.PRH was trading at a 11.44% discount to its liquidation preference amount, versus the average premium of 4.22% 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 BML.PRH shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for BML.PRH, showing historical dividend payments on Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series 2:

BML.PRH+Dividend+History+Chart

In Wednesday trading, Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series 2 (Symbol: BML.PRH) is currently down about 0.5% on the day, while the common shares (Symbol: BAC) are off about 1.7%.

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





This article appears in: Investing
Referenced Symbols: BML.PRH , BAC



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