Bank of America (BAC) Series I Preferred Offers 7 Percent Yield

Investors looking for safety and a decent yield have been enjoying Bank of America's (NYSE:BAC) Series I Preferred stock, which is now yielding 7 percent.

Preferred stock offers more stability to investors because of the guaranteed dividend which a company normally ties into cash and earning, rather than on future cash flow. Dividends in common stock isn't guaranteed, although long-term, successful companies can usually be counted on to pay out at level or growing increments.

At the same time the upside to preferred stock is limited in contrast to common shares, but again, the point is stability and more safety rather than growth.

The 52-week range of Bank of America Series I Preferred is $19.43 to $24.55. Keep in mind there has been heavier trading lately on them.

Bank of America closed Friday at $14.75, dropping $0.06, or 0.41 percent.