EEI sets final dividend rate for Series A, B prefs FOO

In disclosures to the exchange on Tuesday, EEI [EEI 6.53 0.46%] committed to a dividend rate of 5.7641% per year on the Series A prefs (EEIPA), and 6.9394% per year (nice) on the Series B prefs (EEIPB).

Both are priced at P100/share, but EEI is only selling a total of 15 million EEIPA shares, while it plans to sell 45 million of EEIPB. All the dates remain the same. Just remember that the EEIPA shares have an earlier step-up date (3.5 years from issuance) as compared to the EEIPB shares (5.5 years).

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That’s a pretty competitive rate, especially for the EEIPB shares, and in line with what A Brown Company [BRN 0.80 unch] just did with its preferred shares (BRNP) that offered a 7% annual dividend.

What’s interesting to me is that all of the REITs are now “more expensive” compared to these prefs that are offering ~7% annual dividends; a few months ago it was possible to get a REIT with an annualized yield of around 7%, but not now.

The closest thing is DDMP [DDMPR 1.79 1.10%] at 6.19%, with the rest of the field playing between 3.7% and 5.7%

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.