On 2/26/14, Bank of America Corp.'s 6.204% Non-Cumulative Preferred Stock, Series D (BAC.PRD) will trade ex-dividend, for its quarterly dividend of $0.3877, payable on 3/14/14. As a percentage of BAC.PRD's recent share price of $24.97, this dividend works out to approximately 1.55%, so look for shares of BAC.PRD to trade 1.55% lower — all else being equal — when BAC.PRD shares open for trading on 2/26/14. On an annualized basis, the current yield is approximately 6.23%, which compares to an average yield of 5.76% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, BAC.PRD was trading at a 0.40% discount to its liquidation preference amount. 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.PRD shares, versus BAC:
Below is a dividend history chart for BAC.PRD, showing historical dividends prior to the most recent $0.3877 on Bank of America Corp.'s 6.204% Non-Cumulative Preferred Stock, Series D:
According to the ETF Finder at ETF Channel, Bank of America Corp. (BAC) makes up 8.92% of the KBW Bank Portfolio ETF (KBWB) which is trading relatively unchanged on the day Monday.