Schwab’s Preferred Stock Yield Exceeds 6%, Trading at Significant Discount
On Friday, shares of The Charles Schwab Corporation’s 4.45% Dep Shares Non-Cumul Perpetual Preferred Stock Series J (Symbol: SCHW.PRJ) yielded over 6% based on its quarterly dividend, which is annualized to $1.113. Shares traded as low as $18.38 during the session.
This yield stands in contrast to a 6.78% average yield within the “Financial” preferred stock category, according to Preferred Stock Channel. As of the last trading session, SCHW.PRJ was valued at a 25.40% discount to its liquidation preference, significantly higher than the average discount of 12.96% for its peers in the financial sector. Investors should take note that these shares are classified as non-cumulative. This means that, if the company misses a payment, it is not obligated to cover those unpaid dividends to preferred shareholders before resuming common dividend payments.
Below is a dividend history chart for SCHW.PRJ, illustrating historical dividend payments for The Charles Schwab Corporation’s 4.45% Dep Shares Non-Cumul Perpetual Preferred Stock Series J:
Free report: Top 8%+ Dividends (paid monthly)
In Friday trading, The Charles Schwab Corporation’s 4.45% Dep Shares Non-Cumul Perpetual Preferred Stock Series J (Symbol: SCHW.PRJ) saw a decrease of approximately 0.9% for the day. Meanwhile, the common shares (Symbol: SCHW) experienced an increase of about 3%.
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