On 4/28/14, Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series E (BAC.PRE) will trade ex-dividend, for its quarterly dividend of $0.2472, payable on 5/15/14. As a percentage of BAC.PRE's recent share price of $22.15, this dividend works out to approximately 1.12%, so look for shares of BAC.PRE to trade 1.12% lower — all else being equal — when BAC.PRE shares open for trading on 4/28/14. On an annualized basis, the current yield is approximately 4.46%, which compares to an average yield of 5.78% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, BAC.PRE was trading at a 11.40% 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.PRE shares, versus BAC:
Below is a dividend history chart for BAC.PRE, showing historical dividends prior to the most recent $0.2472 on Bank of America Corp.'s Floating Rate Non-Cumulative Preferred Stock, Series E:
According to the ETF Finder at ETF Channel, Bank of America Corp. (BAC) makes up 8.42% of the iShares U.S. Financial Services ETF (IYG) which is trading up by about 0.1% on the day Thursday.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV