Bank Of America Corp.'s 7% Capital Securities Goes Ex-Dividend Soon

On 10/29/13, Bank of America Corp.'s 7% Capital Securities ( CFC.PRB) will trade ex-dividend, for its quarterly dividend of $0.4375, payable on 11/1/13. As a percentage of CFC.PRB's recent share price of $25.42, this dividend works out to approximately 1.72%, so look for shares of CFC.PRB to trade 1.72% lower — all else being equal — when CFC.PRB shares open for trading on 10/29/13. On an annualized basis, the current yield is approximately 6.89%, which compares to an average yield of 5.96% in the "Financial" preferred stock category, according to Preferred Stock Channel.

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As of last close, CFC.PRB was trading at a 1.68% premium to its liquidation preference amount. 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. ( BAC) makes up 8.13% of the KBW Bank Portfolio ETF (KBWB) which is trading higher by about 0.2% on the day Friday.

In Friday trading, Bank of America Corp.'s 7% Capital Securities ( CFC.PRB) is currently trading flat on the day, while the common shares ( BAC) are up about 0.3%.
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