BA BAC.PR.Q Bank of America Corporation Preferred Series Q Loading... : Bullish and Bearish Analyst Opinions

The author notes BACPRQ yields 6.75% in qualified dividends with roughly 60% upside to its $25 call value, which would require Fed rates to fall to about 2% or lower for a call. Even if it took 10 years for rates to be cut and the price to return to $25, that implies roughly an 11% compound annual return, comparable to the historical S&P 500 return. The author frames this as coming from a top-tier credit rating (second-largest US bank, just below JPMorgan) with less risk and volatility than the S&P 500. Main risk is that rates stay elevated and the preferred is not called, leaving the return dependent on the dividend alone.