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SLM's Preferred Stock, Series B Shares Cross 4.5% Yield Mark

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Shutterstock photo

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In trading on Monday, 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 4.5% mark based on its quarterly dividend (annualized to $2.5823), with shares changing hands as low as $56.50 on the day. This compares to an average yield of 5.68% in the "Credit Services & Lending" preferred stock category, according to Preferred Stock Channel . As of last close, SLMBP was trading at a 42.55% discount to its liquidation preference amount, versus the average discount of 20.54% in the "Credit Services & Lending" 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 Monday trading, SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, par value $0.20 per share (Symbol: SLMBP) is currently down about 1.6% on the day, while the common shares (Symbol: SLM) are down about 1.2%.

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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