Ready Capital Corp Preferred Stock Yield Surpasses 9%

Stocks in focus: Ready Capital Corp. shares yield 9% as preferred stock trades at a discount amidst positive trading trends, influencing investor confidence.

Date: 14-02-2025

AI Rating: 7

Preferred Stock Performance and Market Position
Ready Capital Corp's 6.25% Series B Cumulative Convertible Preferred Stock (RC.PRC) has shown significant yield potential, surpassing the 9% mark based on its quarterly dividend of $1.5625. This yield is notably higher than the average yield of 7.83% in the real estate preferred stock category. Such performance may attract investors seeking higher dividend returns.

Discount to Liquidation Preference
The preferred shares are currently trading at a 30.12% discount to their liquidation preference amount, which is considerably larger than the average discount of 12.33% in the sector. This gap indicates that the market might be undervaluing the stock, presenting a potential buying opportunity if investors believe in the underlying company’s fundamentals.

Market Activity
In the trailing market activity, Ready Capital Corp's preferred shares are up approximately 0.9% on the day, while common shares are increasing by about 1.4%. A rising stock price generally reflects positive market sentiment, contributing to investor confidence and potential future price increases.

Stocks: RC.PRC RC