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SLM's Preferred Stock, Series B, Cross 7.5% Yield Mark

In trading on Thursday, shares of SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, par value $0.20 per share (Symbol: SLMBP) were yielding above the 7.5% mark based on its quarterly dividend (annualized to $4.1476), with shares changing hands as low as $54.23 on the day. This compares to an average yield of 5.34% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, SLMBP was trading at a 44.10% discount to its liquidation preference amount, versus the average premium of 6.64% 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 SLMBP shares, versus SLM:

Performance Comparison Chart

Below is a dividend history chart for SLMBP, showing historical dividend payments on SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, par value $0.20 per share:

SLMBP+Dividend+History+Chart

In Thursday trading, SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, par value $0.20 per share (Symbol: SLMBP) is currently off about 0.4% on the day, while the common shares (Symbol: SLM) are up about 0.9%.

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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