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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:

Performance Comparison Chart

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:

NA.PRM+Dividend+History+Chart

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.


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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