On 11/27/13, Webster Financial Corp's 6.40% Series E Non-Cumulative Perpetual Preferred Stock (WBS.PRE) will trade ex-dividend, for its quarterly dividend of $0.40, payable on 12/16/13. As a percentage of WBS.PRE's recent share price of $22.73, this dividend works out to approximately 1.76%, so look for shares of WBS.PRE to trade 1.76% lower — all else being equal — when WBS.PRE shares open for trading on 11/27/13. On an annualized basis, the current yield is approximately 7.06%, which compares to an average yield of 5.97% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, WBS.PRE was trading at a 9.28% discount to its liquidation preference amount. 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 WBS.PRE shares, versus WBS:
Below is a dividend history chart for WBS.PRE, showing historical dividends prior to the most recent $0.40 on Webster Financial Corp's 6.40% Series E Non-Cumulative Perpetual Preferred Stock :
According to the ETF Finder at ETF Channel, Webster Financial Corp (WBS) makes up 2.70% of the KBW Regional Banking Portfolio ETF (KBWR) which is trading higher by about 0.8% on the day Monday.