Alcoa's Preferred Stock, Series 1 Shares Cross 6% Yield Mark

In trading on Thursday, shares of Alcoa , Inc.'s 5.375% Class B Mandatory Convertible Preferred Stock, Series 1 (NYSE: AA.PRB) were yielding above the 6% mark based on its quarterly dividend (annualized to $2.6875), with shares changing hands as low as $43.55 on the day. This compares to an average yield of 5.18% in the "Metals & Mining" preferred stock category, according to Preferred Stock Channel. As of last close, AA.PRB was trading at a 9.44% discount to its liquidation preference amount, versus the average discount of 12.19% in the "Metals & Mining" category. It should be noted that the preferred shares are convertible, with a conversion ratio of 2.57838 and 3.09406.

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The chart below shows the one year performance of AA.PRB shares, versus AA:

Below is a dividend history chart for AA.PRB, showing historical dividend payments on Alcoa, Inc.'s 5.375% Class B Mandatory Convertible Preferred Stock, Series 1:

In Thursday trading, Alcoa, Inc.'s 5.375% Class B Mandatory Convertible Preferred Stock, Series 1 (NYSE: AA.PRB) is currently up about 1% on the day, while the common shares (NYSE: AA) are up about 1.6%.