Preferred Stocks to Buy: Bank of America Series I
Current Dividend Yield: 6.5%
Another compelling selection is any one of several preferred stock choices for Bank of America (BAC).
I’m listing BofA not only because some choices are really good ones, but to point out that they are what’s called “non-cumulative.” This means if the company suspends its preferred dividends, the payments you were supposed to get do not accumulate and get paid if they bank ever reinstated them. So, there’s a bit more risk.
However, this is extremely unlikely to play out, as BAC has returned to full solvency and is stress-test-approved.
In this case, check out the 6.625% Series I, which trades at only 2% over par.