Old National Bancorp's Preferred Shares Yield Above 7%

In Wednesday trading, Old National Bancorp's 7.00% Dep Shares Non-Cumul Preferred Stock (ONBPP) yielded above 7%, outperforming the financial sector average. The shares traded at $24.77, up 0.8% for the day, indicating positive investor sentiment and potential for further appreciation.

Date: 05-02-2025

AI Rating: 7

Earnings Data: The report does not provide any specific mentions of Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow, or Return on Equity for Old National Bancorp.

Dividend Performance: On the positive side, Old National Bancorp's preferred stock offers a 7.00% yield based on a quarterly dividend of $1.75. This yield is above the average yield of 6.51% in the Financial preferred stock category. Such a yield might attract income-focused investors seeking higher returns.

The preferred shares were noted to be trading with a premium of 0.64% above their liquidation preference, contrasting sharply with the average discount of 8.17% within the same category. This indicates strong demand and confidence in the value of ONBPP by the investors.

However, the non-cumulative nature of these shares poses a risk. If a payment is missed, the issuer is not obligated to compensate missed dividends before paying common shareholders, which could deter more risk-averse investors.

On the day of reporting, the shares were observed up approximately 0.8%, while the common shares of Old National Bancorp (ONB) saw a 0.9% increase. This demonstrated a slight upward trend and could signal positive market sentiment toward the company’s financial standing.

Stocks: ONB