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Synchrony Financial's Preferred Stock, Series A Shares Cross 5.5% Yield Mark

In trading on Friday, shares of Synchrony Financial's 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (Symbol: SYF.PRA) were yielding above the 5.5% mark based on its quarterly dividend (annualized to $1.4063), with shares changing hands as low as $25.50 on the day. This compares to an average yield of 5.47% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, SYF.PRA was trading at a 2.40% premium to its liquidation preference amount, versus the average premium of 6.16% 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 SYF.PRA shares, versus SYF:

Performance Comparison Chart

Below is a dividend history chart for SYF.PRA, showing historical dividend payments on Synchrony Financial's 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A:

SYF.PRA+Dividend+History+Chart

In Friday trading, Synchrony Financial's 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (Symbol: SYF.PRA) is currently up about 0.7% on the day, while the common shares (Symbol: SYF) are up about 2.1%.

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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