2024-05-12 11:59:14 ET
Summary
- Recently I turned neutral on Bank of America stock, from a previously bullish opinion. I still hold my shares but don't want to buy more.
- Since changing my opinion on BAC common stock, I haven't yet commented on the 6.2% yielding preferred shares.
- My opinion on those has dimmed to: inflation is looking persistent, treasury yields are rising, so BAC.PR.L probably won't deliver a capital gain.
- The preferreds do offer a decent amount of income, though.
- In this article I explain why I am downgrading my rating on Bank of America's Series 'L' preferreds.
Bank of America ( BAC ) is one of my core portfolio holdings. Up about 30% from my average cost, it has been a success for me. I’m quite comfortable holding Bank of America stock today and for the foreseeable future. However, it might surprise you to learn that I don’t care to buy more. It’s not that I don’t think that BAC will rise from today’s level -- given enough time it likely will -- it’s just that it’s no longer the extreme value opportunity it was at the 2023 lows....
Read the full article on Seeking Alpha
For further details see:
Bank Of America 6% Preferreds: The Fed's Not Cutting (Rating Downgrade)