On 5/1/14, Citigroup Inc's 8.125% Non-Cumulative Preferred Stock, Series AA (C.PRP) will trade ex-dividend, for its quarterly dividend of $0.5078, payable on 5/15/14. As a percentage of C.PRP's recent share price of $29.72, this dividend works out to approximately 1.71%, so look for shares of C.PRP to trade 1.71% lower — all else being equal — when C.PRP shares open for trading on 5/1/14. On an annualized basis, the current yield is approximately 6.82%, which compares to an average yield of 5.76% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, C.PRP was trading at a 19.20% premium 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 C.PRP shares, versus C:
Below is a dividend history chart for C.PRP, showing historical dividends prior to the most recent $0.5078 on Citigroup Inc's 8.125% Non-Cumulative Preferred Stock, Series AA:
According to the ETF Finder at ETF Channel, Citigroup Inc (C) makes up 7.09% of the iShares U.S. Financial Services ETF (IYG) which is trading higher by about 0.9% on the day Tuesday.