Brighthouse Financial Preferred Stock Yields Above 8%

Brighthouse Financial's preferred stock shows strong yields above 8%. With shares at a 15.32% discount to liquidation preference, this may attract investor interest as the stock demonstrates potential despite recent price dips.

Date: 10-03-2025

AI Rating: 6

Performance Overview
Brighthouse Financial Inc's 6.600% Non-Cumulative Preferred Stock, Series A (BHFAP) is currently yielding above 8%, supported by a quarterly dividend of $1.65, indicating a potentially attractive investment for yield-seeking investors. This yield is notably higher than the average yield of 7.38% in the "Life & Health Insurance" preferred stock category.

Price and Discount Analysis
The shares are trading at a 15.32% discount to their liquidation preference, which is slightly more favorable compared to the industry average of 19.63%. This smaller discount could be interpreted as a relative strength as it indicates better market perception compared to its peers.

Dividend Payment Structure
Investors should be aware that the shares are non-cumulative, which means that if Brighthouse were to miss a payment, it would not have the obligation to pay outstanding dividends to preferred shareholders before resuming dividend payments to common shareholders. Thus, the risk associated with dividend payments is notably higher compared to cumulative preferred stocks.

This analysis highlights key factors that could impact stock prices: the high yield, trading discount, and the non-cumulative nature of dividends. Investors must weigh these factors against their risk tolerance and investment strategies.

Stocks: BHF BHFAP