In trading on Friday, shares of Banco Santander SA's 6.50% Non-Cumulative Series 5 Guaranteed Preferred Securities (SAN.PRC) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.625), with shares changing hands as low as $24.96 on the day. This compares to an average yield of 5.75% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, SAN.PRC was trading at a 0.60% premium to its liquidation preference amount, versus the average discount of 2.12% 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.The chart below shows the one year performance of SAN.PRC shares, versus SAN:
Banco Santander's Preferred Shares Cross 6.5% Yield Mark
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