Bank of America's Preferred Stock Series LL Hits 6% Yield Threshold, Trading at Discount of 15.48%

Bank of America's 5.000% Non-Cumulative Preferred Stock, Series LL has a quarterly dividend of $1.25, with shares trading at $20.72, yielding above 6%. The stock is trading at a 15.48% discount to its liquidation preference amount, compared to the average discount of 8.47% in the "Financial" category. Investors should note that the shares are not cumulative, meaning missed payments do not require payment of the balance to preferred shareholders before resuming a common dividend.

Bank of America Corp's 5.000% Non-Cumulative Preferred Stock, Series LL (Symbol: BAC.PRN) has shown impressive performance, with shares trading at $20.72 and yielding above 6% based on its quarterly dividend of $1.25. This yield is higher than the average yield of 6.53% in the "Financial" preferred stock category, as per Preferred Stock Channel [2].

The stock is trading at a 15.48% discount to its liquidation preference amount, compared to the average discount of 8.47% in the "Financial" category. This discount indicates that investors are receiving a premium for the risk associated with preferred stock, which typically has priority over common stock in terms of dividend payments and asset distribution in the event of liquidation.

Investors should be aware that the shares are non-cumulative, meaning that missed dividend payments do not need to be paid out before resuming common dividends. This characteristic can be a consideration for investors seeking consistent income from their investments.

The performance of BAC.PRN coincides with the broader positive outlook for Bank of America's stock. The bank's common shares (Symbol: BAC) have maintained a steady dividend history, with 11 consecutive years of increases. Additionally, Bank of America's stock has reached a new 52-week high, hitting $50.77 USD, reflecting strong market positioning and investor confidence [1].

The combination of a high yield, a discount to liquidation preference, and the broader market performance of Bank of America makes BAC.PRN an attractive option for income-focused investors. However, it is essential to consider the non-cumulative nature of the dividends and the potential risks associated with preferred stock investments.

References:
[1] https://www.investing.com/news/company-news/bank-of-america-stock-hits-52week-high-at-5077-usd-93CH-4216935
[2] https://www.nasdaq.com/articles/bank-americas-preferred-stock-series-ll-crosses-above-6-yield-territory