Associated Banc-Corp Preferred Shares Yield Over 7%

In trading news, Associated Banc-Corp's preferred shares yield above 7%. The shares are trading lower, raising concerns about their discount compared to industry norms.

Date: 07-03-2025

AI Rating: 5

Trading Performance Overview
On Friday, shares of Associated Banc-Corp's 5.625% Dep Shares Non-Cum Perp Preferred Shares (ASB.PRF) showcased a yielding rate surpassing 7%. With the shares trading as low as $20.06, they are currently down approximately 0.1% for the day, indicating minor volatility.

Yield Context
The shares have an annualized dividend of $1.4062, resulting in a yield that, while competitive, is still below the average yield of 7.38% for its category. This could raise caution among investors seeking reliable income from dividends.

Discount to Liquidation Preference
Selling at a 19.08% discount to the liquidation preference amount versus the category average of 8.53% presents an alarming scenario for investors. A significant discount may signal issues with the underlying perceived value or potential difficulties within the company.

Implications of Non-Cumulative Shares
The non-cumulative nature of these shares means that missed payments do not have to be cleared before any common dividends are resumed. This feature heightens risk for preferred shareholders, especially in uncertain financial contexts.

Stocks: ASB