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

On 11/25/14, Wells Fargo & Co.'s 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L (WFC.PRL) will trade ex-dividend, for its quarterly dividend of $18.75, payable on 12/15/14. As a percentage of WFC.PRL's recent share price of $1231.50, this dividend works out to approximately 1.52%, so look for shares of WFC.PRL to trade 1.52% lower — all else being equal — when WFC.PRL shares open for trading on 11/25/14. On an annualized basis, the current yield is approximately 6.10%, which compares to an average yield of 5.72% in the "Financial" preferred stock category, according to Preferred Stock Channel.

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As of last close, WFC.PRL was trading at a 23.15% premium to its liquidation preference amount, versus the average premium of 1.00% in the "Financial" category. It should be noted that the preferred shares are convertible, with a conversion ratio of 32.0513. 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 WFC.PRL shares, versus WFC:

Performance Comparison Chart

Below is a dividend history chart for WFC.PRL, showing historical dividends prior to the most recent $18.75 on Wells Fargo & Co.'s 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L:

WFC.PRL+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Wells Fargo & Co. ( WFC) makes up 11.78% of the Bank and Brokerage ETF (RKH) which is trading relatively unchanged on the day Friday.

In Friday trading, Wells Fargo & Co.'s 7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L ( WFC.PRL) is currently trading flat on the day, while the common shares ( WFC) are trading flat.

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