Corteva Inc Ex-Dividend Date Approaches for Preferred Stock

Corteva Inc's preferred stock, CTA.PRA, will trade ex-dividend on 1/8/25, with a dividend yield of 1.59%. This could lead to a decrease in share price. Investors should monitor this situation closely.

Date: 06-01-2025

AI Rating: 5

Preferred Stock Dividend Announcement

Corteva Inc's Series Cumulative Preferred Stock (CTA.PRA) will trade ex-dividend on 1/8/25, with a quarterly dividend of $0.875. Based on its recent share price of $55.16, this reflects a yield of approximately 1.59%. Following the ex-dividend date, shares may open approximately 1.59% lower.

Investors should also note that the annualized yield currently stands at 6.33%, which is slightly above the average yield of 6.25% in the preferred stock category for 'Materials'. This rate may attract income-focused investors, potentially offering some support for the stock's value. However, the expectation of a lower opening price on the ex-dividend date could put temporary pressure on the stock price.

The current situation, with CTA.PRA experiencing a slight decline of about 0.3% on the day of reporting, in contrast to the flat performance of the common shares (CTVA), suggests some market caution surrounding the upcoming dividend cut. As a general market response, the expected adjustment in the share price due to the dividend may balance out as investors recalibrate their expectations post-ex-dividend.

Overall, while the dividend yield remains attractive and slightly above industry averages, the market's immediate reaction following the ex-dividend date could lead to volatility in the share price.

Stocks: CTVA