BAC
Cash is coming for the preferred crowd
Bank of America said its board approved regular cash dividends on several series of preferred stock, with payment dates stretching from late October into early November. In plain English: if you own one of these preferreds, your mailbox just got a little happier.
Why you should care
This isn’t the kind of announcement that sends traders into a caffeine spiral, but it does tell you something important about the bank’s balance sheet discipline and its commitment to paying shareholders. Preferred dividends are a fixed-cost promise, so these payouts are basically BAC saying, “Yep, we’re still good for it.”
- Series L pays $18.125 per share or depositary share on October 30th
- Series HH pays $0.3671875 on October 26th
- Series NN pays $0.2734375 on November 3rd
- Series OO pays $16.5625 on November 2nd
- Series PP pays $0.2578125 on November 2nd
- Series RR pays $10.9375 on October 27th
- Series TT pays $15.3125 on October 27th
- Series UU pays $15.625 on October 26th
Big picture
For common stock investors, this is mostly background noise. For preferred holders, it’s the whole ballgame: steady income, predictable dates, and one more reminder that big banks still know how to keep the lights on.