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Bank of America's Preferred Stock, Series GG Shares Cross 5.5% Yield Mark

In trading on Wednesday, shares of Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG (Symbol: BAC.PRB) were yielding above the 5.5% mark based on its quarterly dividend (annualized to $1.50), with shares changing hands as low as $27.27 on the day. This compares to an average yield of 5.48% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, BAC.PRB was trading at a 10.28% premium to its liquidation preference amount, versus the average premium of 5.86% 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.PRB shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for BAC.PRB, showing historical dividend payments on Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG :

BAC.PRB+Dividend+History+Chart

In Wednesday trading, Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG (Symbol: BAC.PRB) is currently off about 1.1% on the day, while the common shares (Symbol: BAC) are up about 0.2%.

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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