Midday Commentary: Preferreds ticking up as snowstorm depletes liquidity; Citi to pay out dividends

By Stephanie N. Rotondo

Phoenix, Jan. 3 - The preferred stock market continued to be firm on Friday, despite the limited trading volume.

A trader said the constrained liquidity was due in part to the recent holidays but also to a snowstorm that had hit the East Coast.

"A lot of people are just sitting on their hands," he said.

The Wells Fargo Hybrid and Preferred Securities index was up 39 basis points as of mid-morning.

Late Thursday, Citigroup Inc. announced that it would be paying dividends on six series of preferreds over the next three months. Included in that list were the 7.125% series J fixed-to-floating rate noncumulative preferreds (NYSE: CPJ) and the 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK).

Both of those issues were trading on the active side, considering the low volume levels. The series J preferreds were holding at $26.07 at mid-morning, while the Ks were up 6 cents at $25.46.

The dividend on the Js will be paid March 31 at 44.53125 cents per share. The dividend on the Ks will come Feb. 18 at 50.13020833 cents per share.

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