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Wells Fargo's Preferred Stock, Series L Shares Cross 5% Yield Mark

In trading on Friday, shares of Wells Fargo & Co's 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L (Symbol: WFC.PRL) were yielding above the 5% mark based on its quarterly dividend (annualized to $75.00), with shares changing hands as low as $1497.05 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, WFC.PRL was trading at a 50.40% premium to its liquidation preference amount, versus the average premium of 6.70% in the "Financial" category. It should be noted that the preferred shares are convertible, with a conversion ratio of 32.0513. 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.

Performance Comparison Chart

Below is a dividend history chart for WFC.PRL, showing historical dividend payments on Wells Fargo & Co's 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L:

WFC.PRL+Dividend+History+Chart

In Friday trading, Wells Fargo & Co's 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L (Symbol: WFC.PRL) is currently down about 0.5% on the day, while the common shares (Symbol: WFC) are up about 2%.

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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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