BHFAO

Brighthouse Financial, Inc. Depositary Shares Series O represent fractional ownership interests in the company's Series O preferred stock, with each depositary share representing a 1/1,000th interest in one preferred share. This depositary structure makes the securities affordable for retail investors while maintaining the economic characteristics of preferred stock. Series O ranks senior to common stock but junior to all debt obligations in Brighthouse's capital structure, providing preferred shareholders with priority for both dividend distributions and liquidation proceeds over common equity holders. Series O preferred shares pay fixed quarterly dividends at the rate specified in offering documents, providing predictable income streams for investors. As preferred securities, dividend payments must be made to Series O holders before any distributions to common stockholders. Preferred shareholders generally have no voting rights except in specified circumstances such as prolonged dividend non-payment or proposed changes that would adversely affect preferred shareholder rights. These securities are perpetual with no stated maturity, though Brighthouse typically retains optional redemption rights exercisable after an initial non-call period. These depositary shares target income-oriented investors seeking reliable quarterly dividends, capital structure priority, and exposure to a large U.S. life insurance and annuity provider. The securities' investment quality reflects Brighthouse Financial's financial strength, including capitalization levels, asset quality, underwriting performance, effectiveness of hedging programs protecting against market risks embedded in variable annuity guarantees, and overall risk management capabilities. Preferred share prices fluctuate with interest rate changes (falling when rates rise, rising when rates decline) and credit spreads indicating market perceptions of Brighthouse's financial condition. Investors should consider both insurance sector risks (market volatility affecting guarantees, longevity trends, and regulatory capital requirements) and preferred stock characteristics (interest rate risk, redemption risk, limited growth participation, and subordination to debt in the capital hierarchy).