Reminder: Banco Santander SA's 6.80% Non-Cumulative Series 4 Guaranteed Preferred Securities Goes Ex-Dividend Soon

On 2/4/14, Banco Santander SA's 6.80% Non-Cumulative Series 4 Guaranteed Preferred Securities ( SAN.PRA) will trade ex-dividend, for its quarterly dividend of $0.425, payable on 2/21/14. As a percentage of SAN.PRA's recent share price of $24.94, this dividend works out to approximately 1.70%, so look for shares of SAN.PRA to trade 1.70% lower — all else being equal — when SAN.PRA shares open for trading on 2/4/14. On an annualized basis, the current yield is approximately 6.82%, which compares to an average yield of 5.81% 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, SAN.PRA was trading at a 0.20% 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 SAN.PRA shares, versus SAN:

Performance Comparison Chart

Below is a dividend history chart for SAN.PRA, showing historical dividends prior to the most recent $0.425 on Banco Santander SA's 6.80% Non-Cumulative Series 4 Guaranteed Preferred Securities:

SAN.PRA+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Banco Santander SA ( SAN) makes up 4.53% of the Bank and Brokerage ETF (RKH) which is trading lower by about 1.3% on the day Friday.

In Friday trading, Banco Santander SA's 6.80% Non-Cumulative Series 4 Guaranteed Preferred Securities ( SAN.PRA) is currently trading flat on the day, while the common shares ( SAN) are off about 1.7%.

If you liked this article you might like

With Eyes on Solar Eclipse, Wall Street Stumbles Yet Again

Renewed Speculation of ECB Tightening Boosts the Euro

European Banks Stocks Rebound as Investors Put Risk Bank Into Play