The bank does reserve the right to convert its preferred stock to common stock en masse if the latter goes to $65. This is a negative because it takes rights away from you as a shareholder. As you can see, BAC.PR.L has an attractive conversion option and pays a dividend that is unlikely to be eliminated or reduced. It’s a decent security.
Is Bac a profitable bank?
However, as mentioned previously, the bank is profitable enough that this isn’t likely to happen. BAC common shares paid dividends all through the 2020 COVID recession and the Spring 2023 banking crisis; a cut to the preferred dividends seems unlikely given today’s relatively buoyant economy. They are convertible, and can be converted at any time.
Who issued a series of preferred stock?
(1) Each series of preferred stock was issued by Bank of America Corporation (the "Corporation"). The final prospectus supplement for each series, if available, is hyperlinked in first column of the table above.
