On 11/26/14, Webster Financial Corp's 6.40% Series E Non-Cumulative Perpetual Preferred Stock (NYSE: WBS.PRE) will trade ex-dividend, for its quarterly dividend of $0.40, payable on 12/15/14. As a percentage of WBS.PRE's recent share price of $25.28, this dividend works out to approximately 1.58%, so look for shares of WBS.PRE to trade 1.58% lower — all else being equal — when WBS.PRE shares open for trading on 11/26/14. On an annualized basis, the current yield is approximately 6.36%, which compares to an average yield of 5.74% in the "Financial" preferred stock category, according to Preferred Stock Channel.
As of last close, WBS.PRE was trading at a 0.76% premium to its liquidation preference amount, versus the average premium of 1.06% in the "Financial" category. Investors should keep in mind that the shares are not cumulative, 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 WBS.PRE shares, versus WBS:
Below is a dividend history chart for WBS.PRE, showing historical dividends prior to the most recent $0.40 on Webster Financial Corp's 6.40% Series E Non-Cumulative Perpetual Preferred Stock :
According to the ETF Finder at ETFChannel.com, Webster Financial Corp (NYSE: WBS) makes up 2.48% of the ProShares Ultra KBW Regional Banking ETF (KRU) which is trading lower by about 2.5% on the day Monday.
In Monday trading, Webster Financial Corp's 6.40% Series E Non-Cumulative Perpetual Preferred Stock (NYSE: WBS.PRE) is currently up about 0.4% on the day, while the common shares (NYSE: WBS) are up about 0.5%.
