Morgan Stanley's Preferred Stock, Series A Yield Pushes Past 4.5%

Morgan Stanley's Preferred Stock, Series A Yield Pushes Past 4.5%

By Preferred Stock Channel Staff, Monday, December 9, 2:29 PM ET

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In trading on Monday, shares of Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A (NYSE: MS.PRA) were yielding above the 4.5% mark based on its quarterly dividend (annualized to $1.0222), with shares changing hands as low as $22.26 on the day. This compares to an average yield of 5.31% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, MS.PRA was trading at a 11.00% discount to its liquidation preference amount, versus the average premium of 5.84% in the "Financial" category. Investors should keep in mind that the shares are notcumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.

The chart below shows the one year performance of MS.PRA shares, versus MS:

Below is a dividend history chart for MS.PRA, showing historical dividend payments on Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A:

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In Monday trading, Morgan Stanley's Floating Rate Non-Cumulative Preferred Stock, Series A (NYSE:MS.PRA) is currently up about 0.3% on the day, while the common shares (NYSE:MS) are down about 0.2%.