PacWest Bancorp's 7.75% Preferred Stock, Series A Yield Pushes Past 9.5%

In trading on Wednesday, shares of PacWest Bancorp's 7.75% Dep Shares Rate Reset Non-Cumul Preferred Stock, Series A (Symbol: PACWP) were yielding above the 9.5% mark based on its quarterly dividend (annualized to $1.938), with shares changing hands as low as $20.38 on the day. This compares to an average yield of 6.84% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, PACWP was trading at a 18.00% discount to its liquidation preference amount, versus the average discount of 13.49% 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 PACWP shares, versus PACW:

Below is a dividend history chart for PACWP, showing historical dividend payments on PacWest Bancorp's 7.75% Dep Shares Rate Reset Non-Cumul Preferred Stock, Series A:

In Wednesday trading, PacWest Bancorp's 7.75% Dep Shares Rate Reset Non-Cumul Preferred Stock, Series A (Symbol: PACWP) is currently trading flat on the day, while the common shares (Symbol: PACW) are down about 2.2%.

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