Cash Dividend On The Way From Royal Bank of Scotland Group plc's Non-cumulative Dollar Preference Shares, Series R

On 9/11/14, Royal Bank of Scotland Group plc's Non-cumulative Dollar Preference Shares, Series R ( RBS.PRR) will trade ex-dividend, for its quarterly dividend of $0.3828, payable on 9/30/14. As a percentage of RBS.PRR's recent share price of $24.00, this dividend works out to approximately 1.60%, so look for shares of RBS.PRR to trade 1.60% lower — all else being equal — when RBS.PRR shares open for trading on 9/11/14. On an annualized basis, the current yield is approximately 6.35%, which compares to an average yield of 5.91% in the "Banking & Savings" 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, RBS.PRR was trading at a 3.48% 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 RBS.PRR shares, versus RBS:

Performance Comparison Chart

Below is a dividend history chart for RBS.PRR, showing historical dividends prior to the most recent $0.3828 on Royal Bank of Scotland Group plc's Non-cumulative Dollar Preference Shares, Series R:

RBS.PRR+Dividend+History+Chart

In Tuesday trading, Royal Bank of Scotland Group plc's Non-cumulative Dollar Preference Shares, Series R ( RBS.PRR) is currently off about 0.5% on the day, while the common shares ( RBS) are trading flat.

If you liked this article you might like

Deutsche Bank Securities Fined $70 Million in Manipulation Case

Deutsche Bank Securities Fined $70 Million in Manipulation Case

European Stocks Notch Firm Gains, Wall Street Futures Improve as Dollar Rebounds

European Stocks Notch Firm Gains, Wall Street Futures Improve as Dollar Rebounds

Bank of England: U.K. Lenders Could Weather a 'Disorderly' Brexit

Bank of England: U.K. Lenders Could Weather a 'Disorderly' Brexit

Bank of England Says U.K. Lenders Could Weather 'Disorderly' Brexit

Bank of England Says U.K. Lenders Could Weather 'Disorderly' Brexit

Royal Bank of Scotland Stock Gains as it Swings into Profit

Royal Bank of Scotland Stock Gains as it Swings into Profit