Bank of America's Preferred Stock, Series 4 Crosses Above 7% Yield Territory

In trading on Friday, shares of Bank of America Corp's Floating Rate Non-Cumulative Preferred Stock, Series 4 (Symbol: BML.PRJ) were yielding above the 7% mark based on its quarterly dividend (annualized to $1.41), with shares changing hands as low as $20.14 on the day. This compares to an average yield of 6.83% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, BML.PRJ was trading at a 18.72% discount to its liquidation preference amount, versus the average discount of 13.58% in the "Financial" category. 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.