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Bank of America’s Preferred Stock Underperforms in Financial Category

Published 19/10/2023, 06:38
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Bank of America's Series GG Non-Cumulative Preferred Stock (NYSE: BAC.PRB) underperformed on Wednesday, with a yield above 6.5%, falling short of the average yield of 7.35% in the "Financial" preferred stock category. The shares were trading at a 6.36% discount to their liquidation preference amount, a figure notably lower than the category's average discount of 17.87%.

The one-year performance chart for BAC.PRB indicates a downward trend. Despite this, the dividend history chart reveals a steady annualized dividend of $1.50, underscoring the non-cumulative nature of these preferred shares, which negates any obligation to repay missed dividends before common dividends can resume.

InvestingPro Data reveals that Bank of America has a market cap of 218.84B USD and an attractive P/E ratio of 7.74. The company has also shown promising revenue growth, with a 5.63% increase in the last twelve months, and a quarterly growth of 8.6% in FY2023.Q2. This aligns with InvestingPro Tips, which noted that the bank has seen accelerating revenue growth recently.

On the same day, both BACs.PRB and common shares (NYSE: BAC) experienced a drop, with respective declines of 1.1% and 0.3%.

For investors seeking additional insights into this sector, several related resources are available, including KGN Videos and UNH Past Earnings reports. Information on insider buying at FFFC and other stocks recommended for smart investing is also suggested for further reading.

InvestingPro Tips also highlights that Bank of America has maintained dividend payments for 53 consecutive years, and has raised its dividend for 9 consecutive years, which is a testament to the bank's stability and commitment to returning capital to shareholders. This information, along with many other valuable insights, can be found on the InvestingPro platform, offering a wealth of knowledge for investors.

InvestingPro also provides real-time metrics, offering valuable insights such as the company's gross profit of 96.44B USD in the last twelve months and an operating income of 33.32B USD. For more detailed information and additional tips, consider checking out InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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