American International Group Series A Preferred Shares Cross 5.5% Yield Threshold

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IIn Wednesday’s trading, American International Group Inc’s 5.85% Series A Non-Cumulative Perpetual Preferred Shares (ticker: AIG.PRA) were trading above the 5.5% mark based on its quarterly dividend (annualized to $1.4625), with shares changing hands as low as $26.31 on the day. That compares to an average return of 5.58% in the “financial” preferred stock category, according to Preferred Stock Channel. At last close, AIG.PRA was trading at a premium of 6.72% to its preferred liquidation amount, compared to an average discount of 3.19% in the “Financial” category. Investors should keep in mind that stocks are not cumulativemeaning that in the event of a missed payment, the company does not have to pay the balance of the missed dividends to preferred shareholders before resuming a common dividend.

The graph below shows the one-year performance of AIG.PRA shares, compared to AIG:

Below is a graph of AIG.PRA’s historical dividends, showing historical dividend payments on American International Group Inc’s 5.85% Series A Non-Cumulative Perpetual Preferred Shares:

AIG.PRA+Dividend+Historical+Chart


Free report: Top 7%+ Dividends (paid monthly)

On Wednesday, American International Group Inc’s 5.85% Series A Non-Cumulative Perpetual Preferred Shares (ticker: AIG.PRA) are currently down about 0.4% on the day, while common stocks ( symbol: AIG) are up around 1.6%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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