RBS Non-cumulative Dollar Preference Shares, Series T Shares Cross 8% Yield Mark

In trading on Friday, shares of Royal Bank of Scotland Group Plc’s Non-cumulative Dollar Preference Shares, Series T (NYSE: RBS.PRT) were yielding above the 8% mark based on its quarterly dividend (annualized to $1.8125), with shares changing hands as low as $22.54 on the day. This compares to an average yield of 5.24% in the “Banking & Savings” preferred stock category, according to Preferred Stock Channel. As of last close, RBS.PRT was trading at a -9.16% discount to its liquidation preference amount, versus the average discount of -10.25% in the “Banking & Savings” 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.
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http://www.forbes.com/sites/dividendchannel/2012/09/28/rbs-non-cumulative-dollar-preference-shares-series-t-shares-cross-8-yield-mark/