Markets

Royal Bank of Canada's Preferred Series AJ Shares Cross 3.5% Yield Mark

Shutterstock photo
Shutterstock photo

Shutterstock photo

In trading on Tuesday, shares of Royal Bank of Canada (Montreal, Quebec)'s Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AJ (TSX: RY-PRI.TO ) were yielding above the 3.5% mark based on its quarterly dividend (annualized to $0.88), with shares changing hands as low as $24.96 on the day. As of last close, RY.PRI was trading at a 0.76% premium to its liquidation preference amount. It should be noted that the preferred shares are convertible . 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 RY.PRI shares, versus RY:

Performance Comparison Chart

Below is a dividend history chart for RY.PRI, showing historical dividend payments on Royal Bank of Canada (Montreal, Quebec)'s Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AJ:

RY.PRI+Dividend+History+Chart

In Tuesday trading, Royal Bank of Canada (Montreal, Quebec)'s Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AJ (TSX: RY-PRI.TO ) is currently trading flat on the day, while the common shares (TSX: RY.TO ) are down about 0.6%.

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.