On 12/27/13, Huntington Bancshares, Inc's 8.50% Series A Non-Cumulative Perpetual Convertible Preferred Stock (HBANP) will trade ex-dividend, for its quarterly dividend of $21.25, payable on 1/15/14. As a percentage of HBANP's recent share price of $1278.85, this dividend works out to approximately 1.66%, so look for shares of HBANP to trade 1.66% lower — all else being equal — when HBANP shares open for trading on 12/27/13. On an annualized basis, the current yield is approximately 6.77%, which compares to an average yield of 5.97% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, HBANP was trading at a 25.73% premium to its liquidation preference amount. It should be noted that the preferred shares are convertible, with a conversion ratio of 83.668. 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 HBANP shares, versus HBAN:
Below is a dividend history chart for HBANP, showing historical dividends prior to the most recent $21.25 on Huntington Bancshares, Inc's 8.50% Series A Non-Cumulative Perpetual Convertible Preferred Stock :
According to the ETF Finder at ETF Channel, Huntington Bancshares, Inc (HBAN) makes up 4.19% of the KBW Bank Portfolio ETF (KBWB) which is trading relatively unchanged on the day Thursday.