Reminder: HSBC Holdings Floating Rate Non-Cumulative Preferred Stock, Series F Goes Ex-Dividend Soon

On 9/11/14, HSBC Holdings plc's Floating Rate Non-Cumulative Preferred Stock, Series F (HUSI.PRF) will trade ex-dividend, for its quarterly dividend of $0.2236, payable on 10/1/14. As a percentage of HUSI.PRF's recent share price of $21.71, this dividend works out to approximately 1.03%, so look for shares of HUSI.PRF to trade 1.03% lower — all else being equal — when HUSI.PRF shares open for trading on 9/11/14. On an annualized basis, the current yield is approximately 4.12%, which compares to an average yield of 5.91% in the "Banking & Savings" preferred stock category, according to Preferred Stock Channel.

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As of last close, HUSI.PRF was trading at a 13.20% 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 HUSI.PRF shares, versus HSBC:

Performance Comparison Chart

Below is a dividend history chart for HUSI.PRF, showing historical dividends prior to the most recent $0.2236 on HSBC Holdings plc's Floating Rate Non-Cumulative Preferred Stock, Series F:

HUSI.PRF+Dividend+History+Chart

According to the ETF Finder at ETF Channel, HSBC Holdings plc ( HSBC) makes up 7.50% of the Bank and Brokerage ETF (RKH) which is trading relatively unchanged on the day Tuesday.

In Tuesday trading, HSBC Holdings plc's Floating Rate Non-Cumulative Preferred Stock, Series F ( HUSI.PRF) is currently up about 0.1% on the day, while the common shares ( HSBC) are trading flat.

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