Markets

HSBC Holdings' Preference Series A Shares Cross 6.5% Yield Mark

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Shutterstock photo

Shutterstock photo

In trading on Thursday, shares of HSBC Holdings plc's 6.20% Non-Cumulative Dollar Preference Shares, Series A (Symbol: HSBC.PRA) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.55), with shares changing hands as low as $23.31 on the day. This compares to an average yield of 5.84% in the "Financial" preferred stock category, according to Preferred Stock Channel . As of last close, HSBC.PRA was trading at a 0.28% discount to its liquidation preference amount, versus the average premium of 0.28% 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 HSBC.PRA shares, versus HSBC:

Performance Comparison Chart

Below is a dividend history chart for HSBC.PRA, showing historical dividend payments on HSBC Holdings plc's 6.20% Non-Cumulative Dollar Preference Shares, Series A:

HSBC.PRA+Dividend+History+Chart

In Thursday trading, HSBC Holdings plc's 6.20% Non-Cumulative Dollar Preference Shares, Series A (Symbol: HSBC.PRA) is currently down about 5.9% on the day, while the common shares (Symbol: HSBC) are down about 4.1%.

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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