Bank of America Corp’s 5.000% Non-Cumulative Preferred Stock, Series LL (NYSE: BAC.PRN) will trade ex-dividend on September 1, 2026, meaning investors who buy shares on or after that date will not receive the upcoming quarterly payout of $0.3125 per share. The dividend is scheduled to be paid on September 17, 2026, to shareholders of record as of the close of business on September 2, 2026.
Based on the stock’s recent price of $19.51, the quarterly dividend represents approximately 1.60% of the share price. As a result, BAC.PRN shares are expected to open about 1.60% lower on September 1, all else being equal, reflecting the fact that new buyers will not be entitled to the payment.
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Yield Comparison Within the Preferred Stock Market
On an annualized basis, BAC.PRN currently offers a yield of approximately 6.37%. That compares with an average yield of 6.80% for preferred stocks in the Financial category, according to Preferred Stock Channel. The spread highlights a modest discount relative to peers, which may reflect the non-cumulative nature of the issue or broader market conditions affecting bank preferreds.
Series LL is a non-cumulative preferred, meaning that if Bank of America were to suspend dividends on the issue, it would have no obligation to make up missed payments. This structural detail is important for income-focused investors comparing yields across preferred securities.
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Broader Market Context and BAC Exposure
The ex-dividend event comes as Bank of America’s common shares (NYSE: BAC) traded up approximately 2.1% on Friday, while BAC.PRN shares were down about 0.6% on the day. The divergent moves are typical in preferred stock trading, where price action is driven more by interest rate expectations and credit perceptions than by the common equity’s day-to-day momentum.
Bank of America common stock also carries notable weight in financial sector ETFs. According to the ETF Finder at ETF Channel, BAC makes up 8.82% of the First Trust Nasdaq Bank ETF (NASDAQ: FTXO), which was trading higher by about 0.3% on Friday. For investors holding preferred shares indirectly through funds, the ex-dividend adjustment is typically reflected in the fund’s net asset value rather than creating a visible price drop.
What Investors Should Watch
For current holders of BAC.PRN, no action is required to receive the September 17 dividend, provided shares are held through the record date. For prospective buyers, waiting until after the ex-dividend date means acquiring shares at a slightly lower price but forgoing the upcoming payment — a trade-off that generally nets out for long-term income investors.
Looking ahead, the trajectory of short-term interest rates will remain the primary driver for preferred stock valuations. Bank preferreds such as Series LL trade with a high sensitivity to the Federal Reserve’s policy path, and any shift in rate-cut expectations could move yields across the Financial preferred category more broadly.
Investors comparing BAC.PRN against other bank preferreds should weigh the non-cumulative feature, the current yield gap relative to the category average, and the credit quality of the issuer. Bank of America’s preferred securities carry investment-grade ratings, which supports demand but also tends to cap yields relative to lower-rated preferreds in the market.
This article is for informational purposes only and does not constitute financial advice. Preferred stock markets are volatile and subject to interest rate and credit risk. Investors should conduct their own research or consult a licensed financial advisor before making investment decisions.
