BHFAM

Brighthouse Financial, Inc. Depositary Shares Series M represent fractional interests in Brighthouse Financial preferred stock, with each depositary share representing a 1/1,000th ownership interest in a share of preferred stock. This structure makes the securities accessible at lower price points than whole preferred shares. Series M preferred stock ranks senior to common stock for dividend payments and liquidation but is subordinate to all debt obligations. The securities provide investors with priority income from Brighthouse Financial, a major life insurance and annuity provider. Series M preferred shares pay fixed dividends at a rate specified in the offering documents, distributed quarterly to shareholders. As preferred securities, they provide income stability and priority over common stock dividends, though preferred dividends may be suspended by the company's board if financial conditions warrant (though cumulative provisions would typically require payment of missed dividends before common dividends resume). Preferred shareholders generally lack voting rights except under specific circumstances. The securities are perpetual without a maturity date, though Brighthouse may have the option to redeem them after a specified non-call period. These depositary shares suit income investors seeking regular dividend payments, capital structure priority, and exposure to the insurance sector through Brighthouse Financial. The company's financial strength, underwriting results, investment portfolio performance, hedging effectiveness on variable annuity guarantees, and capital management directly impact the securities' credit quality and dividend sustainability. Preferred share prices exhibit sensitivity to interest rate changes, typically declining when rates rise and appreciating when rates fall, while also responding to credit spread changes reflecting market assessment of Brighthouse's financial health. Investors should evaluate both the insurance industry's specific risks (including longevity risk, market risk on guarantees, and regulatory capital requirements) and the characteristics of preferred securities (including interest rate sensitivity, call risk, and limited participation in company growth).