UBS Preferred Funding Trust IV Floating Rate Non-Cumulative Trust Preferred Securities About To Put More Money In Your Pocket

On 10/30/13, UBS Preferred Funding Trust IV Floating Rate Non-Cumulative Trust Preferred Securities (UBS.PRD) will trade ex-dividend, for its monthly dividend of $0.0188, payable on 11/15/13. As a percentage of UBS.PRD's recent share price of $14.85, this dividend works out to approximately 0.13%. On an annualized basis, the current yield is approximately 1.52%, which compares to an average yield of 5.95% in the "Financial" preferred stock category, according to Preferred Stock Channel.

START SLIDESHOW:
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen »

As of last close, UBS.PRD was trading at a 40.44% 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 UBS.PRD shares, versus UBS:

Performance Comparison Chart

Below is a dividend history chart for UBS.PRD, showing historical dividends prior to the most recent $0.0188 on UBS Preferred Funding Trust IV Floating Rate Non-Cumulative Trust Preferred Securities:

UBS.PRD+Dividend+History+Chart

According to the ETF Finder at ETF Channel, UBS AG ( UBS) makes up 4.30% of the Bank and Brokerage ETF (RKH) which is trading relatively unchanged on the day Monday.

In Monday trading, UBS Preferred Funding Trust IV Floating Rate Non-Cumulative Trust Preferred Securities ( UBS.PRD) is currently off about 0.3% on the day, while the common shares ( UBS) are up about 0.7%.

null

More from Stocks

UAW Officially Files Complaint on Tesla Thanks to CEO Elon Musk

UAW Officially Files Complaint on Tesla Thanks to CEO Elon Musk

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer on Foot Locker's Earnings: Nike Is a Buy

Jim Cramer on Foot Locker's Earnings: Nike Is a Buy