Bank of America Preferred Shares Yield Above 5.5%

Bank of America preferred stock yields over 5.5%. The shares currently trade at a discount of 4.00% compared to a larger industry average, indicating potential investor caution. Investors on Tuesday also noted a 1.2% decline in BAC.PRE shares and a 5.7% drop in common shares.

Date: 04-03-2025

AI Rating: 5

Preferred Stock Yield Analysis
The report indicates that Bank of America Corp's Floating Rate Non-Cumulative Preferred Stock, Series E (BAC.PRE) is yielding more than 5.5%, based on its annualized dividend of $1.3123. This yield is significantly lower than the average yield of 7.35% in the financial preferred stock category, suggesting that investors may be cautious about this investment, potentially affecting its desirability.

The stock is currently trading at a 4.00% discount to its liquidation preference. This is favorable compared to the average discount of 8.87% observed in the same financial category. However, the shares being non-cumulative adds a layer of risk, as missed payments will not be compensated in the future, which could deter some investors.

The BAC.PRE shares experienced a drop of about 1.2% on Tuesday, while the common shares (BAC) fell even more significantly by 5.7%. This indicates a challenging trading environment for Bank of America, which could diminish investor confidence and subsequently impact stock prices negatively. Overall, there is a cautious outlook for Bank of America stocks, particularly concerning preferred shares.

Stocks: BAC