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Charles Schwab's Preferred Stock, Series D Crosses Above 5.5% Yield Territory

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Shutterstock photo

Shutterstock photo

In trading on Thursday, shares of The Charles Schwab Corporation's 5.95% Non-Cumulative Perpetual Preferred Stock, Series D (Symbol: SCHW.PRD) were yielding above the 5.5% mark based on its quarterly dividend (annualized to $1.488), with shares changing hands as low as $27.04 on the day. This compares to an average yield of 5.36% in the "Financial" preferred stock category, according to Preferred Stock Channel . As of last close, SCHW.PRD was trading at a 9.48% premium to its liquidation preference amount, versus the average premium of 6.43% in the "Financial" category. Investors should keep in mind that the shares are not cumulative , meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.

The chart below shows the one year performance of SCHW.PRD shares, versus SCHW:

Performance Comparison Chart

Below is a dividend history chart for SCHW.PRD, showing historical dividend payments on The Charles Schwab Corporation's 5.95% Non-Cumulative Perpetual Preferred Stock, Series D:

SCHW.PRD+Dividend+History+Chart

In Thursday trading, The Charles Schwab Corporation's 5.95% Non-Cumulative Perpetual Preferred Stock, Series D (Symbol: SCHW.PRD) is currently down about 1.1% on the day, while the common shares (Symbol: SCHW) are off about 1.9%.

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


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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SCHW SCHW.PRD

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