SLM Corp. Preferred Shares Yield Above 9.5% Amid Market Dip

SLM Corp. sees its Series B preferred shares yield over 9.5%. Despite trading down 1.2%, the substantial yield outperforms the Financial sector average, indicating potential investor interest.

Date: 10-01-2025

AI Rating: 5

Earnings Overview: The analysis does not provide any direct information regarding Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow (FCF), or Return on Equity (ROE).

Dividends and Yield: SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, is currently yielding above 9.5%, significantly higher than the 6.59% average yield in the Financial preferred stock category. This high yield can attract investors seeking income, particularly in a low-interest-rate environment.

Discount to Liquidation Preference: The shares are trading at a 26.11% discount to their liquidation preference amount, compared to an 8.77% average discount in the Financial sector. This considerable discount may indicate a risk perception among investors, affecting stock attractiveness.

Market Performance: On the trading day, SLMBP shares are down approximately 1.2%, while the common shares (SLM) also saw a decline of about 1.3%. This trend may suggest broader market pressures, potentially affecting investor sentiment toward SLM Corp.

Stocks: SLMBP SLM