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

In trading on Wednesday, shares of Bank of America Corp.'s 6.204% Non-Cumulative Preferred Stock, Series D ( BAC.PRD) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.551), with shares changing hands as low as $23.86 on the day. This compares to an average yield of 5.94% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, BAC.PRD was trading at a 3.72% discount to its liquidation preference amount, versus the average discount of 4.55% 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.PRD shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for BAC.PRD, showing historical dividend payments on Bank of America Corp.'s 6.204% Non-Cumulative Preferred Stock, Series D:

BAC.PRD+Dividend+History+Chart

In Wednesday trading, Bank of America Corp.'s 6.204% Non-Cumulative Preferred Stock, Series D ( BAC.PRD) is currently off about 0.7% on the day, while the common shares ( BAC) are off about 2.2%.

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