On 3/27/14, Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A (MS.PRA) will trade ex-dividend, for its quarterly dividend of $0.25, payable on 4/15/14. As a percentage of MS.PRA's recent share price of $19.82, this dividend works out to approximately 1.26%, so look for shares of MS.PRA to trade 1.26% lower — all else being equal — when MS.PRA shares open for trading on 3/27/14. On an annualized basis, the current yield is approximately 5.08%, which compares to an average yield of 5.70% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, MS.PRA was trading at a 21.20% 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 MS.PRA shares, versus MS:
Below is a dividend history chart for MS.PRA, showing historical dividends prior to the most recent $0.25 on Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A:
According to the ETF Finder at ETF Channel, Morgan Stanley (MS) makes up 9.29% of the PowerShares KBW Capital Markets Portfolio ETF (KBWC) which is trading relatively unchanged on the day Tuesday.