US Bancorp Series B Preferred Shares Cross 4.5% Yield Threshold


IIn Friday’s trading, US Bancorp’s Series B perpetual non-cumulative preferred stock (ticker: USB.PRH) was selling above the 4.5% mark based on its quarterly dividend (annualized at 0.875 $), with shares changing hands as low as $19.04. day. That compares to an average return of 5.92% in the “financial” preferred stock category, according to Preferred Stock Channel. As of last close, USB.PRH was trading at a 21.00% discount to its preferential liquidation amount, compared to an average discount of 9.17% 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 chart below shows the one-year performance of USB.PRH shares, versus USB:

Below is a historical dividend chart for USB.PRH, showing historical dividend payments on US Bancorp Series B perpetual non-cumulative preferred shares:


US Bancorp Series B Perpetual Non-Cumulative Preferred Shares (ticker: USB.PRH) are currently down about 3% on the day on Friday, while common stocks (ticker: USB) are down about 1.8%.

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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