Synovus Preferred Stock Offers High Yield Amid Trading Boost

Shares of Synovus Financial preferred stock yield over 8.5%, significantly above the financial sector average of 6.78%. As common shares rise 6.9%, investor interest in non-cumulative dividends may increase.

Date: 09-04-2025

AI Rating: 7

Yield and Performance Analysis
Synovus Financial's preferred shares, SNV.PRE, are yielding above 8.5% based on an annualized dividend of $2.0992. This yield is notably higher than the average in the financial sector, which is around 6.78%. The current trading level of SNV.PRE at $24.41 reflects a 0.64% discount to its liquidation preference amount, significantly better than the typical 12.92% discount seen in the financial category. This indicates that preferred shareholders may find this investment more attractive compared to peers.

While the yield is compelling, it's crucial to note that the non-cumulative nature of these shares means that missed payments do not accumulate, presenting a risk for investors who might rely on consistent dividend income. However, the stability in common shares, which saw an increase of 6.9% on the same day, suggests positive market sentiment towards Synovus Financial, potentially benefiting both common and preferred shareholders.

Consideration of Market Conditions
With current economic sentiments, the yield presented by SNV.PRE could attract income-focused investors who are willing to accept the associated risks of non-cumulative preferred stocks. Additionally, the relatively strong performance of the common shares suggests investor confidence in the overall financial health of Synovus, which can contribute to a stable environment for preferred stockholders as well.

Stocks: SNV