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Bank of America's Preferred Stock, Series 3 Crosses Above 6.5% Yield Territory

In trading on Friday, shares of Bank of America Corp.'s 6.375% Non-Cumulative Preferred Stock, Series 3 (Symbol: BML.PRI) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.5938), with shares changing hands as low as $24.51 on the day. This compares to an average yield of 5.74% in the "Financial" preferred stock category, according to Preferred Stock Channel . As of last close, BML.PRI was trading at a 1.40% discount to its liquidation preference amount, versus the average discount of 0.69% 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.PRI shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for BML.PRI, showing historical dividend payments on Bank of America Corp.'s 6.375% Non-Cumulative Preferred Stock, Series 3 :

BML.PRI+Dividend+History+Chart

In Friday trading, Bank of America Corp.'s 6.375% Non-Cumulative Preferred Stock, Series 3 (Symbol: BML.PRI) is currently down about 0.6% on the day, while the common shares (Symbol: BAC) are trading flat.

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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