First Merchants' Preferred Stock Series A Shares Cross 7.5% Yield Mark

In trading on Friday, shares of First Merchants Corp's 7.50% Dep Shares Non-Cumulative Preferred Stock Series A (Symbol: FRMEP) were yielding above the 7.5% mark based on its quarterly dividend (annualized to $1.8752), with shares changing hands as low as $25.00 on the day. This compares to an average yield of 6.58% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, FRMEP was trading at a 0.76% premium to its liquidation preference amount, versus the average discount of 8.73% 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 FRMEP shares, versus FRME:

Below is a dividend history chart for FRMEP, showing historical dividend payments on First Merchants Corp's 7.50% Dep Shares Non-Cumulative Preferred Stock Series A:

In Friday trading, First Merchants Corp's 7.50% Dep Shares Non-Cumulative Preferred Stock Series A (Symbol: FRMEP) is currently off about 0.3% on the day, while the common shares (Symbol: FRME) are off about 1.3%.

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