Bank of America Upgrades Series Q Preferred to Hold with 6.0% Yield
Bank of America Corporation upgraded its Series Q preferred shares to Hold following a yield repositioning now mid-range among major peers. Series Q delivers a 6.0% yield with 21x dividend coverage, 10.7x principal coverage, call protection and a lower coupon, making it preferable to Series N for taxable accounts.
1. Upgrade to Hold
Bank of America Corporation’s Series Q preferred shares received a Hold rating upgrade based on their repositioned yield now ranking mid-range versus major bank peers. The upgrade reflects an assessment of income potential balanced with risk metrics.
2. Yield, Coverage and Comparison
Series Q shares offer a 6.0% coupon with dividend coverage of 21x and principal coverage of 10.7x, minimizing default risk. Call protection and a lower coupon enhance appeal, particularly for taxable accounts, where Series Q is preferred over Series N.