Cash Dividend On The Way From Royal Bank of Scotland Group Non-cumulative Guaranteed Trust Preferred Securities

On 9/25/14, Royal Bank of Scotland Group plc's 6.25% Non-cumulative Guaranteed Trust Preferred Securities (RBS.PRI) will trade ex-dividend, for its quarterly dividend of $0.3906, payable on 9/30/14. As a percentage of RBS.PRI's recent share price of $24.14, this dividend works out to approximately 1.62%, so look for shares of RBS.PRI to trade 1.62% lower — all else being equal — when RBS.PRI shares open for trading on 9/25/14. On an annualized basis, the current yield is approximately 6.47%, which compares to an average yield of 5.93% 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.PRI was trading at a 3.44% 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 RBS.PRI shares, versus RBS:

Performance Comparison Chart

Below is a dividend history chart for RBS.PRI, showing historical dividends prior to the most recent $0.3906 on Royal Bank of Scotland Group plc's 6.25% Non-cumulative Guaranteed Trust Preferred Securities:

RBS.PRI+Dividend+History+Chart

In Tuesday trading, Royal Bank of Scotland Group plc's 6.25% Non-cumulative Guaranteed Trust Preferred Securities ( RBS.PRI) is currently trading flat on the day, while the common shares ( RBS) are trading flat.

More from Stocks

Tesla Received Tip That Former Employee Was Going to 'Shoot the Place Up'

Tesla Received Tip That Former Employee Was Going to 'Shoot the Place Up'

Stocks Tumble as Dow Heads for Eighth Straight Drop

Stocks Tumble as Dow Heads for Eighth Straight Drop

Jim Cramer: Williams Sonoma Is a Digitized Play

Jim Cramer: Williams Sonoma Is a Digitized Play

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

Jim Cramer Weighs In on Intel CEO Resignation

Jim Cramer Weighs In on Intel CEO Resignation