Associated Banc-Corp Shares Yield Above 7%, Trading Insights

In trading on Tuesday, Associated Banc-Corp saw shares of its preferred stock yield above 7%. This may signal investment interest amidst a significant discount to liquidation preference, which could influence stock prices moving forward.

Date: 04-03-2025

AI Rating: 5

Investment Insights: Shares of Associated Banc-Corp's preferred stock, trading under the symbol ASB.PRE, are currently yielding above the 7% mark, presenting a quarterly dividend that is annualized to $1.4688. The current trading price of ASB.PRE sits at $20.94. This yield is slightly below the average yield of 7.35% in the Financial preferred stock category.

Market Perception: The trading price reflects a 14.36% discount from its liquidation preference amount, which is significantly higher than the average discount of 8.87% in the category. This indicates a potential undervaluation, making it a possible buying opportunity for investors looking for high yield. However, it's crucial for investors to consider that the shares are non-cumulative. This means if there is a missed payment, the company is not liable to make up missed dividends to preferred shareholders before returning to paying dividends on the common stock.

Daily Performance: On Tuesday, ASB.PRE shares experienced a decline of approximately 1.6%. Likewise, the common shares of Associated Banc-Corp (symbol: ASB) faced a decrease of about 2.4%. The downward movement in stock prices, coupled with the high yield, brings into question the overall market sentiment towards the company and the potential risks associated with holding its preferred stock.

Consequently, while the yield above 7% may attract investors in search of income, the discount to liquidation preference and non-cumulative nature of the dividends could raise concerns about future payments and overall financial stability. Investors should weigh these factors carefully when considering an investment in ASB.PRE.

Stocks: ASB