Cullen/Frost Preferred Stock Yield Exceeds 6% Amid Discounts

Cullen/Frost Bankers, Inc. sees its preferred stock yielding above 6%, prompting investor interest. Shares are trading at a significant discount, which may affect stock valuations.

Date: 18-02-2025

AI Rating: 5

Preferred Stock Yield: Cullen/Frost Bankers, Inc.'s 4.45% Dep Shares Non-Cumulative Preferred Stock Series B (CFR.PRB) is yielding above 6%, suggesting stronger investor interest compared to other financial stocks.

Discounts: The stock is currently trading at a 25.60% discount to its liquidation preference amount, noticeably higher than the average 7.59% discount in the financial category. This disparity may prompt investors to evaluate the risk versus return involved.

Dividend Structure: Investors should note that the shares are non-cumulative, indicating that missed payments do not need to be paid back. This may deter certain investors who prefer more security in dividends.

Market Performance: On the trading day analyzed, CFR.PRB was down approximately 0.2%, whereas the common shares (CFR) showed a slight gain of about 0.5%. This divergence could influence perceptions about the underlying strength of the financial health of Cullen/Frost Bankers.

Overall, the performance metrics of the preferred shares suggest a somewhat cautious atmosphere, influenced by the high yield and significant discount to liquidation preference.

Stocks: CFR