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Royal Bank of Canada's Preferred Series AP Shares Cross 5% Yield Mark

In trading on Thursday, shares of Royal Bank of Canada (Montreal, Quebec)'s Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series AP (TSX: RY-PRP.TO) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.3125), with shares changing hands as low as $26.10 on the day. As of last close, RY.PRP was trading at a 5.20% 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.PRP shares, versus RY:

Performance Comparison Chart

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

RY.PRP+Dividend+History+Chart

In Thursday trading, Royal Bank of Canada (Montreal, Quebec)'s Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series AP (TSX: RY-PRP.TO) is currently off about 0.3% on the day, while the common shares (TSX: RY.TO) are trading flat.

Click here to find out which 9 other Canadian dividend stocks just recently went ''on sale'' and crossed into new yield territory »

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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