Bank of America Non-Cumulative Perpetual Convertible Preferred Stock, Series L Goes Ex-Dividend Soon

On 6/27/14, Bank of America Corp.'s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (BAC.PRL) will trade ex-dividend, for its quarterly dividend of $18.125, payable on 7/30/14. As a percentage of BAC.PRL's recent share price of $1191.00, this dividend works out to approximately 1.52%, so look for shares of BAC.PRL to trade 1.52% lower — all else being equal — when BAC.PRL shares open for trading on 6/27/14. On an annualized basis, the current yield is approximately 6.12%, which compares to an average yield of 5.52% in the "Financial" preferred stock category, according to Preferred Stock Channel.

START SLIDESHOW:
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen »

As of last close, BAC.PRL was trading at a 18.60% premium to its liquidation preference amount, versus the average premium of 0.17% in the "Financial" category. It should be noted that the preferred shares are convertible, with a conversion ratio of 20. 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.PRL shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for BAC.PRL, showing historical dividends prior to the most recent $18.125 on Bank of America Corp.'s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L:

BAC.PRL+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Bank of America Corp. ( BAC) makes up 7.28% of the Bank and Brokerage ETF (RKH) which is trading lower by about 0.1% on the day Wednesday.

In Wednesday trading, Bank of America Corp.'s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L ( BAC.PRL) is currently up about 0.4% on the day, while the common shares ( BAC) are down about 0.5%.

More from Stocks

What You Need to Know About Facebook and Europe's New Privacy Rules

What You Need to Know About Facebook and Europe's New Privacy Rules

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric