On 6/26/14, U.S. Bancorp's Preferred Stock (USB.PRA) will trade ex-dividend, for its quarterly dividend of $8.8472, payable on 7/15/14. As a percentage of USB.PRA's recent share price of $837.50, this dividend works out to approximately 1.06%, so look for shares of USB.PRA to trade 1.06% lower — all else being equal — when USB.PRA shares open for trading on 6/26/14. On an annualized basis, the current yield is approximately 4.23%, which compares to an average yield of 5.52% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, USB.PRA was trading at a 16.25% discount to its liquidation preference amount, versus the average premium of 0.11% 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 USB.PRA shares, versus USB:
Below is a dividend history chart for USB.PRA, showing historical dividends prior to the most recent $8.8472 on U.S. Bancorp's Preferred Stock:
According to the ETF Finder at ETF Channel, U.S. Bancorp (USB) makes up 3.43% of the Bank and Brokerage ETF (RKH) which is trading lower by about 0.1% on the day Tuesday.