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Bank of America Corp.'s 7% Capital Securities About To Put More Money In Your Pocket

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On 1/27/17, Bank of America Corp.'s 7% Capital Securities (Symbol: CFC.PRB) will trade ex-dividend, for its quarterly dividend of $0.4375, payable on 2/1/17. As a percentage of CFC.PRB's recent share price of $25.78, this dividend works out to approximately 1.70%, so look for shares of CFC.PRB to trade 1.70% lower - all else being equal - when CFC.PRB shares open for trading on 1/27/17. On an annualized basis, the current yield is approximately 6.79%, which compares to an average yield of 5.64% in the "Financial" preferred stock category, according to Preferred Stock Channel . The chart below shows the one year performance of CFC.PRB shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for CFC.PRB, showing historical dividends prior to the most recent $0.4375 on Bank of America Corp.'s 7% Capital Securities:

CFC.PRB+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Bank of America Corp. (Symbol: BAC) makes up 8.91% of the iShares U.S. Financial Services ETF ( IYG ) which is trading higher by about 1.3% on the day Wednesday.

In Wednesday trading, Bank of America Corp.'s 7% Capital Securities (Symbol: CFC.PRB) is currently off about 0.1% on the day, while the common shares (Symbol: BAC) are up about 1.9%.

Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen »

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


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

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