National Bank of Canada's Non-Cumulative Fixed Rate First Preferred Shares Series 20 About To Put More Money In Your Pocket
On 10/8/15, National Bank of Canada's Non-Cumulative Fixed Rate First Preferred Shares Series 20 (TSX: NA-PRM.TO ) will trade ex-dividend, for its quarterly dividend of $0.375, payable on 11/15/15. As a percentage of NA.PRM's recent share price of $25.83, this dividend works out to approximately 1.45%, so look for shares of NA.PRM to trade 1.45% lower - all else being equal - when NA.PRM shares open for trading on 10/8/15. On an annualized basis, the current yield is approximately 5.81%.
As of last close, NA.PRM was trading at a 3.32% premium to its liquidation preference amount. 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 NA.PRM shares, versus NA:
Below is a dividend history chart for NA.PRM, showing historical dividends prior to the most recent $0.375 on National Bank of Canada's Non-Cumulative Fixed Rate First Preferred Shares Series 20:
According to the ETF Finder at ETF Channel, National Bank of Canada (TSX: NA.TO ) makes up 1.16% of the SPDR MSCI Canada Quality Mix ETF ( QCAN ) which is trading relatively unchanged on the day Tuesday.
In Tuesday trading, National Bank of Canada's Non-Cumulative Fixed Rate First Preferred Shares Series 20 (TSX: NA-PRM.TO ) is currently trading flat on the day, while the common shares (TSX: NA.TO ) are trading flat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.