Fifth Third Bancorp's Preferred Shares Cross 6.5% Yield Mark

Fifth Third Bancorp’s 6.00% non-cumulative perpetual preferred (FITB.PRA) was trading at yields above 6.5%, based on an annualized dividend of $1.50. Shares changed hands as low as $22.78, implying the market is pricing a higher income yield on the preferred despite no stated change in dividend terms in the report.

Analysis

Fifth Third Bancorp’s 6.00% non-cumulative perpetual preferred (FITB.PRA) was trading at yields above 6.5%, based on an annualized dividend of $1.50. Shares changed hands as low as $22.78, implying the market is pricing a higher income yield on the preferred despite no stated change in dividend terms in the report.