Equitable Holdings' Preferred Stock Yield Rises Above 6%

In recent trading, Equitable Holdings Inc's preferred stock saw yields surpassing 6%, reflecting market sentiments as it trades at a significant discount. This situation may impact investor decisions in the financial sector, particularly regarding dividend payments and liquidity preferences.

Date: 19-12-2024

AI Rating: 5

The report highlights the trading performance of Equitable Holdings Inc's preferred stock (EQH.PRC) and its recent yield surpassing 6%. The stock is trading at a 27.32% discount to its liquidation preference amount, which is considerably above the average discount in the "Financial" category, noted to be 8.23%. This notable discount may indicate investor concerns about the stability or dividend security of the preferred shares.

Furthermore, the non-cumulative nature of the preferred shares is crucial; it means if a payment is missed, the company does not owe those dividends before resuming common stock dividends. This could lead to perceived higher risk among investors, especially if any financial difficulties arise.

On a positive note, despite the concerns surrounding the preferred shares, the common shares (EQH) moved up about 1.1%, showing some resilience in the market. However, the preferred shares dropped by approximately 1.6% on the day, which indicates mixed sentiments among investors.

Stocks: EQH EQH.PRC