American Equity Investment Life Holding’s Preferred Stock, Series A Crosses Above 5.5% Yield Territory

In trading on Tuesday, shares of American Equity Investment Life Holding Co’s 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A (Symbol: AEL.PRA) were yielding above the 5.5% mark based on its quarterly dividend (annualized to $1.4875), with shares changing hands as low as $27.00 on the day. This compares to an average yield of 5.24% in the “Financial” preferred stock category, according to Preferred Stock Channel. As of last close, AEL.PRA was trading at a 10.00% premium to its liquidation preference amount, versus the average premium of 6.49% 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 AEL.PRA shares, versus AEL:

Below is a dividend history chart for AEL.PRA, showing historical dividend payments on American Equity Investment Life Holding Co’s 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A:

Free Report: Top 7%+ Dividends (paid monthly)

In Tuesday trading, American Equity Investment Life Holding Co’s 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A (Symbol: AEL.PRA) is currently off about 1.8% on the day, while the common shares (Symbol: AEL) are trading flat.

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