In trading on Tuesday, shares of Royal Bank of Scotland Group plc's Non-cumulative Dollar Preference Shares, Series M (RBS.PRM) were yielding above the 7.5% mark based on its quarterly dividend (annualized to $1.60), with shares changing hands as low as $21.33 on the day. This compares to an average yield of 6.47% in the "Banking & Savings" preferred stock category, according to Preferred Stock Channel. As of last close, RBS.PRM was trading at a 14.52% discount to its liquidation preference amount, versus the average discount of 7.93% in the "Banking & Savings" 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 RBS.PRM shares, versus RBS:
Royal Bank of Scotland's Preference Shares, Series M Yield Pushes Past 7.5%
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