BAC-PB

Bank of America Series B preferred offers a higher yield than JPMorgan preferreds, reflecting BAC's slightly higher risk profile and history. Bank of America required significant government assistance during 2008-2009 and spent the better part of a decade rebuilding its balance sheet and reputation under CEO Brian Moynihan.

Today, Bank of America is the second-largest bank in the United States with over $3 trillion in assets. It has passed every Fed stress test since the tests began, rebuilt its capital ratios to industry-leading levels, and streamlined its operations. The bank's Merrill Lynch wealth management division provides a diversified revenue stream that reduces dependence on lending alone.

BAC-PB trades at a yield premium to JPM preferreds, which compensates investors for the additional risk associated with BAC's more complicated history. For income investors willing to accept slightly more credit risk for a higher yield, Bank of America preferreds offer a compelling risk/reward trade-off.