Bank of America: Using 6.4%-Yielding Preferred Shares To Speculate On A Rate Cut


  • Bank of America Corporation’s Series L preferred shares offer a 6.4% yield and potential for capital gains if rates are cut in 2024.
  • The bank’s recent financial performance indicates that the preferred dividends are safe and the company can afford to make them.
  • The Bank of America Series L preferred shares are a “busted” preferred that cannot be called by the bank, making them an attractive investment option.

Government Bailout

Douglas Rissing


While I’m not a big fan of non-cumulative preferred shares, some issues have features that are sufficiently interesting to consider adding them to my portfolio anyway. In a previous article, I discussed the “busted” preferred shares issued by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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