Wells Fargo & Co’s Preferred Stock Yield Exceeds 6.5%

On Monday, Wells Fargo & Co’s 4.75% Dep Shares Non-Cumul Perp Cls A Preferred Stock Series Z (Symbol: WFC.PRZ) yielded over 6.5%, based on its quarterly dividend of $1.1875 annualized. Shares traded as low as $18.23 during the day.

This yield is slightly below the average of 6.67% for preferred stocks in the “Financial” category, as reported by Preferred Stock Channel. At the last close, WFC.PRZ was trading at a 26.52% discount to its liquidation preference amount, compared to the average discount of 12.04% within its category. It’s important to note that these shares are non-cumulative; if a payment is missed, the company is not obligated to pay any accumulated dividends to preferred shareholders before resuming common dividends.

The accompanying chart illustrates the one-year performance of WFC.PRZ shares compared to WFC common shares:

Additionally, the chart below displays the historical dividend payments for Wells Fargo’s 4.75% Dep Shares Non-Cumul Perp Cls A Preferred Stock Series Z:

In Monday’s trading, Wells Fargo & Co’s WFC.PRZ was down approximately 0.4%, while the common shares (Symbol: WFC) decreased 0.7%.