Cash Dividend On The Way From U.S. Bancorp's Series G Non-Cumulative Perpetual Preferred Stock

On 6/26/15, U.S. Bancorp's Series G Non-Cumulative Perpetual Preferred Stock ( USB.PRN) will trade ex-dividend, for its quarterly dividend of $0.375, payable on 7/15/15. As a percentage of USB.PRN's recent share price of $27.06, this dividend works out to approximately 1.39%, so look for shares of USB.PRN to trade 1.39% lower — all else being equal — when USB.PRN shares open for trading on 6/26/15. On an annualized basis, the current yield is approximately 5.56%, which compares to an average yield of 5.79% in the "Financial" preferred stock category, according to Preferred Stock Channel.

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As of last close, USB.PRN was trading at a 8.04% premium to its liquidation preference amount, versus the average premium of 0.93% in the "Financial" category. 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 USB.PRN shares, versus USB:

Performance Comparison Chart

Below is a dividend history chart for USB.PRN, showing historical dividends prior to the most recent $0.375 on U.S. Bancorp's Series G Non-Cumulative Perpetual Preferred Stock:

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