Bank of America Corp's Non-Cumulative Perpetual Convertible Preferred Stock, Series L Shares Cross 6.5% Yield Mark

In trading on Wednesday, shares of Bank of America Corp's 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (Symbol: BAC.PRL) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $72.50), with shares changing hands as low as $1107.51 on the day. This compares to an average yield of 7.11% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, BAC.PRL was trading at a 11.70% premium to its liquidation preference amount, versus the average discount of 14.58% 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:

Below is a dividend history chart for BAC.PRL, showing historical dividend payments on Bank of America Corp's 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L:

In Wednesday trading, Bank of America Corp's 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (Symbol: BAC.PRL) is currently down about 0.1% on the day, while the common shares (Symbol: BAC) are up about 1.5%.

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