In trading on Wednesday, shares of Synchrony Financial’s 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (Symbol: SYF.PRA) were yielding above the 7% mark based on its quarterly dividend (annualized to $1.4063), with shares changing hands as low as $19.93 on the day. This compares to an average yield of 6.46% in the “Financial” preferred stock category, according to Preferred Stock Channel. As of last close, SYF.PRA was trading at a 18.92% discount to its liquidation preference amount, versus the average discount of 6.78% 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.
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:
In Wednesday trading, Synchrony Financial’s 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (Symbol: SYF.PRA) is currently off about 1.2% on the day, while the common shares (Symbol: SYF) are up about 0.7%.
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