Morgan Stanley's Preferred Stock, Series A Yield Pushes Past 4.5%

In trading on Wednesday, shares of Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A ( MS.PRA) were yielding above the 4.5% mark based on its quarterly dividend (annualized to $1.0222), with shares changing hands as low as $22.54 on the day. This compares to an average yield of 5.50% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, MS.PRA was trading at a 8.28% discount to its liquidation preference amount, versus the average premium of 5.10% 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 MS.PRA shares, versus MS:

Performance Comparison Chart

Below is a dividend history chart for MS.PRA, showing historical dividend payments on Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A:

MS.PRA+Dividend+History+Chart

In Wednesday trading, Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A ( MS.PRA) is currently off about 0.7% on the day, while the common shares ( MS) are up about 6.6%.

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