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Bank of America posts 12% net income growth in Q1, preferred shares yield 5.9% with capital gain potential.

Company Fundamentals
03 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Bank of America reported a strong first quarter with net income rising 12% quarter-over-quarter, supported by solid preferred dividend coverage. Its preferred shares, particularly BAC.PR.L, offer a 5.9% yield and potential capital appreciation through forced conversion if the common stock price exceeds $65 for 20 days. The analyst recommends a mix of common stock and Series L preferred shares to balance yield and growth, noting that buying Series L below $1,200 per share can boost yield above 6% and capital gain potential above 8%. This strategy aims to provide investors with steady income and upside potential.

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