On 6/26/14, U.S. Bancorp's Series F Non-Cumulative Perpetual Preferred Stock (USB.PRM) will trade ex-dividend, for its quarterly dividend of $0.4062, payable on 7/15/14. As a percentage of USB.PRM's recent share price of $28.37, this dividend works out to approximately 1.43%, so look for shares of USB.PRM to trade 1.43% lower — all else being equal — when USB.PRM shares open for trading on 6/26/14. On an annualized basis, the current yield is approximately 5.74%, 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.PRM was trading at a 13.32% premium 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.PRM shares, versus USB:
Below is a dividend history chart for USB.PRM, showing historical dividends prior to the most recent $0.4062 on U.S. Bancorp's Series F Non-Cumulative Perpetual 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 relatively unchanged on the day Tuesday.