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Morgan Stanley’s Fixed-To-Floating Rate Non-Cumulative Preferred Stock, Series F (NYSE: MS.PRF) yielded over 7% on Thursday, outpacing the financial sector’s average yield for preferred stocks. The yield for MS.PRF was achieved with a quarterly dividend annualized to $1.7188 and shares trading as low as $24.55.
The preferred stock traded at a 1.68% discount to its liquidation preference amount, markedly less than the financial sector’s average discount of 18.37%. The non-cumulative nature of the Series F stock indicates that any missed payments do not need to be compensated before resuming common dividends.
On Thursday, MS.PRF saw a rise of 0.3%, contrasting with Morgan Stanley’s common shares (NYSE: MS), which fell by 1.4%. This performance has drawn attention to the company’s preferred stocks, particularly in light of the current yield environment.
InvestingPro data shows that Morgan Stanley has a market capitalization of $119.73B USD and a P/E ratio of 13.39. The company has seen a decline in revenue growth of -3.38% as of the third quarter of 2023. Despite these challenges, the company has managed to maintain a dividend yield of 4.66% as of 2023.
However, the InvestingPro Tips suggest that the company may face some headwinds. For instance, the company has seen a declining trend in earnings per share and is quickly burning through cash. This, coupled with the fact that 10 analysts have revised their earnings downwards for the upcoming period, could put pressure on the company’s performance.
The performance of MS.PRF surpasses the average yield of the “Financial” preferred stock category, which stands at 7.40%. This performance has been tracked using resources such as the dividend history chart for MS.PRF and data on the 50 highest-yielding preferreds.
The information about Morgan Stanley’s preferred stock yields and other related data are available through various resources, including the Smart Investing newsletter. For more detailed insights and tips, consider subscribing to InvestingPro, which offers additional InvestingPro Tips to help guide your investment decisions. You can access their services here.
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