Bank of America Corp.'s Trust Preferred Securities About To Put More Money In Your Pocket

On 9/10/14, Bank of America Corp.'s Trust Preferred Securities (MER.PRK) will trade ex-dividend, for its quarterly dividend of $0.4031, payable on 9/15/14. As a percentage of MER.PRK's recent share price of $25.58, this dividend works out to approximately 1.58%, so look for shares of MER.PRK to trade 1.58% lower — all else being equal — when MER.PRK shares open for trading on 9/10/14. On an annualized basis, the current yield is approximately 6.31%, which compares to an average yield of 5.75% in the "Financial" preferred stock category, according to Preferred Stock Channel.

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As of last close, MER.PRK was trading at a 2.16% premium 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 MER.PRK shares, versus BAC:

Performance Comparison Chart

Below is a dividend history chart for MER.PRK, showing historical dividends prior to the most recent $0.4031 on Bank of America Corp.'s Trust Preferred Securities :

MER.PRK+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Bank of America Corp. ( BAC) makes up 8.04% of the iShares U.S. Financial Services ETF (IYG) which is trading relatively unchanged on the day Monday.

In Monday trading, Bank of America Corp.'s Trust Preferred Securities ( MER.PRK) is currently up about 0.2% on the day, while the common shares ( BAC) are up about 1.7%.

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