Atlantic Union Bankshares Preferred Shares Yield Above 7%

Preferred shares of Atlantic Union Bankshares Corp yield over 7% as trading reflects a discount to liquidation preferences. This indicates potential investor confidence, although non-cumulative dividends may pose risks. Investors need to weigh the benefits against possible missed payments.

Date: 13-03-2025

AI Rating: 6

Yield Analysis: Atlantic Union Bankshares Corp's preferred shares (AUB.PRA) are yielding above 7%, specifically at 6.875% based on its quarterly dividend of $1.72. This yield surpasses the average yield of 6.56% in the financial preferred stock category, indicating a positive perception among investors regarding these shares.

However, the stock is currently trading at a 1.40% discount to its liquidation preference, in contrast to the average discount of 9.09% in the financial sector. This signals that the share price is being viewed more favorably compared to its peers, which is a positive factor.

Dividend Conditions: Investors should also be aware that the shares are non-cumulative. In the case of a missed payment, the company is not obligated to pay any unpaid dividends before resuming common dividends, which could be a risk for investors seeking consistent income from dividends.

Performance Insights: On Thursday, AUB.PRA shares were down about 1%, while the common shares for Atlantic Union Bankshares remained flat. The slight drop in preferred shares might reflect market fluctuations or investor behavior, but overall the yield remains attractive compared to sector averages.

Stocks: AUB