In trading on Tuesday, August 29, Flagstar Bank’s 6.375% Fixed-to-Floating Rate Series A Noncumulative Perpetual Preferred Stock (Symbol: FLG.PRA) yielded over 7%, with shares reaching a low of $22.67. This yield exceeds the average of 6.58% for preferred stocks in the financial sector, according to data from Preferred Stock Channel.
At the last close, FLG.PRA traded at an 8.76% discount to its liquidation preference, compared to the sector’s average discount of 10.17%. Notably, these shares are noncumulative, meaning any missed dividend payments do not need to be compensated before common dividend payments resume. Meanwhile, on the same day, the common shares (Symbol: FLG) increased by 1.4%, while FLG.PRA fell by about 0.4%.
