Arch Capital Group's Preferred Shares, Series E Crosses Above 5.5% Yield Territory


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In trading on Monday, shares of Arch Capital Group Ltd’s 5.25% Non-Cumulative Preferred Shares, Series E (Symbol: ACGLP) were yielding above the 5.5% mark based on its quarterly dividend (annualized to $1.3125), with shares changing hands as low as $23.36 on the day. This compares to an average yield of 6.04% in the “Insurance Brokers” preferred stock category, according to Preferred Stock Channel . As of last close, ACGLP was trading at a 3.52% discount to its liquidation preference amount, versus the average discount of 0.92% in the “Insurance Brokers” 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 ACGLP shares, versus ACGL: Performance Comparison Chart

Below is a dividend history chart for ACGLP, showing historical dividend payments on Arch Capital Group Ltd’s 5.25% Non-Cumulative Preferred Shares, Series E : ACGLP+Dividend+History+Chart In Monday trading, Arch Capital Group Ltd’s 5.25% Non-Cumulative Preferred Shares, Series E (Symbol: ACGLP) is currently off about 1.9% on the day, while the common shares (Symbol: ACGL) are off about 0.3%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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