Preferred stock is a type of hybrid security that combines features of both stocks and bonds. Preferred stockholders receive regular dividend payments, similar to bondholders, but they also have the potential for capital appreciation, like stockholders. Preferred stock is often considered a less risky investment than common stock, but it also typically offers lower returns.
Bank of America (BAC) is one of the largest banks in the United States. It offers a variety of preferred stock options, each with its own unique features and benefits. Some of the benefits of investing in Bank of America preferred stock include: