Equitable Holdings (NYSE:EQH)' Series A Preferred Stock (EQH.PRA) surpassed the financial sector's average yield of 7.13% on Monday, providing a yield above 7% based on its annualized quarterly dividend of $1.3125 and a share price low of $18.75. This performance stands in stark contrast to the sector's average, highlighting EQH.PRA's strong performance.
The preferred stock closed trading at a 23.88% discount to its liquidation preference amount, a noteworthy deviation from the category's average discount of 14.89%. This suggests that investors are pricing in a higher risk for EQH.PRA compared to other preferred shares in the financial sector.
EQH.PRA is non-cumulative, which means there is no obligation to pay missed dividends before common dividends resume. This feature differentiates it from cumulative preferred stocks, where any skipped dividends must be paid out before common shareholders receive any dividends.
On Monday, the value of EQH.PRA decreased slightly by 0.2%, a minimal dip compared to Equitable's common shares (EQH), which experienced a more substantial drop of 4.1%. Despite the decrease in value, EQH.PRA's yield remained competitive within the financial sector.
The historical dividend payment chart for EQH.PRA provided further insight into the stock's past performance, although specific details were not disclosed in the context provided.
InvestingPro Insights
In light of the recent performance of Equitable Holdings' Series A Preferred Stock (EQH.PRA), InvestingPro provides some insightful data and tips. According to InvestingPro data, the company has a market cap of 9020M USD and a P/E ratio of 5.91 as of Q3 2023. Notably, the company had a revenue of 11.91B USD and a gross profit of 3746M USD during the same period.
Two key InvestingPro Tips are particularly relevant. Firstly, the management of EQH has been aggressively buying back shares, which can be a positive sign for investors as it indicates the management’s belief in the company’s undervaluation. Secondly, EQH yields a high return on invested capital, a metric that measures how well a company is using its capital to generate profits.
It's important to note that these are just two of many valuable tips available on InvestingPro. For more insights and tips, consider exploring InvestingPro's comprehensive platform.
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