Reminder: Manulife Financial's Class 1 Shares Series 11 Goes Ex-Dividend Soon

On 2/24/14, Manulife Financial Corp.'s Non-cumulative Rate Reset Class 1 Shares Series 11 (TSX: MFC-PRJ.TO) will trade ex-dividend, for its quarterly dividend of $0.25, payable on 3/19/14. As a percentage of MFC.PRJ's recent share price of $25.57, this dividend works out to approximately 0.98%, so look for shares of MFC.PRJ to trade 0.98% lower — all else being equal — when MFC.PRJ shares open for trading on 2/24/14. On an annualized basis, the current yield is approximately 3.94%.

As of last close, MFC.PRJ was trading at a 1.64% premium to its liquidation preference amount. It should be noted that the preferred shares are convertible, with a conversion ratio of The holders of Series 11 Preferred Shares will have the right, at their option, to convert their shares into Non-cumulative Floating Rate Class 1 Shares Series 12 of MFC, which we refer to as the Series 12 Preferred Shares, subject to certain conditions, on March 19, 2018 and on March 19 every five years thereafter. The holders of Series 12 Preferred Shares will be entitled to receive floating rate non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 19th day of March, June, September and December in each year (we refer to the initial quarterly dividend period and each subsequent quarterly dividend period as a Quarterly Floating Rate Period), in a quarterly amount per share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined below) by $25.00. The Floating Quarterly Dividend Rate will be equal to the sum of the T-Bill Rate (as defined below) plus 2.61% (calculated on the basis of the actual number of days elapsed in the applicable Quarterly Floating Rate Period divided by 365) determined on the 30th day prior to the first day of the applicable Quarterly Floating Rate Period. See Details of the Offering.. 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 MFC.PRJ shares, versus MFC:

Performance Comparison Chart

If you liked this article you might like

Cash Dividend On The Way From Wells Fargo Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L

NextEra Energy Equity Units Ex-Dividend Reminder

Ex-Div Reminder For AG Mortgage Investment Trust Series A Cumulative Redeemable Preferred Stock

KeyCorp's Non-Cumulative Perpetual Convertible Preferred Stock, Series A Goes Ex-Dividend Soon

Cash Dividend On The Way From Sun Life Financial's Preferred Shares Series 5