American Equity Declares 1st Quarter 2024 Preferred Stock Dividend
American Equity Investment Life Holding Company (AEL) has declared cash dividends for its Series A and Series B Preferred Stocks, payable in March 2024 to shareholders of record as of February 15, 2024. The cash dividend for Series A is $371.8750000 per share, and for Series B is $414.0625000 per share.
The declaration of dividends for both Series A and Series B Preferred Stock by American Equity Investment Life Holding Company represents a commitment to return value to shareholders. The fixed-rate reset feature indicates that the dividend rate can be adjusted periodically, which provides a hedge against interest rate fluctuations. The specified rates of 5.95% and 6.625% are relatively attractive in the current interest rate environment, potentially making these preferred shares a stable income-generating investment.
Investors should note the non-cumulative nature of these preferred stocks, meaning that if the company decides not to pay a dividend in any period, shareholders are not entitled to arrears payments in the future. This could affect the income reliability for income-focused investors. However, the listing of depositary receipts on the NYSE underlines liquidity, allowing investors to buy or sell shares with relative ease.
From a market perspective, the announcement of dividends can be seen as a positive signal of the company's financial health and its ability to generate steady cash flows. The impact on the stock market, particularly for AEL's stock, may include increased investor confidence and potentially a more favorable view among dividend investors.
However, it is essential to compare the dividend yields with those of competitors and the broader market to assess their attractiveness thoroughly. The long-term sustainability of these dividend payments should also be considered, given that they are subject to the company's financial performance and economic conditions.
Dividend announcements such as these are indicative of the company's current economic position and its outlook on future earnings. Fixed-rate reset preferred stocks are particularly sensitive to interest rate changes and the current rates suggest that American Equity Investment Life Holding Company is locking in costs of capital that are favorable given the current low-interest-rate environment.
This strategic move may also reflect broader economic conditions, where companies might anticipate higher interest rates in the future. The timing of such announcements could be crucial for the company's capital structure and cost of equity in the long run, as it impacts the attractiveness of these securities to income-oriented investors.
02/01/2024 - 04:15 PM
WEST DES MOINES, Iowa --(BUSINESS WIRE)--
American Equity Investment Life Holding Company (NYSE: AEL), today announced that in accordance with the terms of its 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A (the “Series A Preferred Stock”), which is represented by depositary shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock (the “Series A Depositary Shares”), the Board of Directors has declared a cash dividend of $371.87 50000 per share of Series A Preferred Stock (equivalent to $0.37 1875000 per Series A Depositary Share). The dividend will be payable on March 1, 2024 to Series A Preferred Stock shareholders of record as of February 15, 2024. Depositary receipts for the Series A Preferred Stock are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “AELPRA”.
Additionally, American Equity Investment Life Holding Company today announced that in accordance with the terms of its 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B (the “Series B Preferred Stock”), which is represented by depositary shares, each representing a 1/1,000th interest in a share of Series B Preferred Stock (the “Series B Depositary Shares”), the Board of Directors has declared a cash dividend of $414.06 25000 per share of Series B Preferred Stock (equivalent to $0.41 4062500 per Depositary Share). The dividend will be payable on March 1, 2024 to Series B Preferred Stock shareholders of record as of February 15, 2024. Depositary receipts for the Series B Preferred Stock are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “AELPRB”.
ABOUT AMERICAN EQUITY
At American Equity Investment Life Holding Company, our policyholders work with over 40,000 independent agents and advisors affiliated with independent marketing organizations (IMOs), banks and broker-dealers through our wholly-owned operating subsidiaries. Advisors and agents choose one of our leading annuity products best suited for their client’s personal needs to create financial dignity in retirement. To deliver on its promises to policyholders, American Equity has re-framed its investments focus – building a stronger emphasis on insurance liability driven asset allocation and specializing in alternate, private asset management while partnering with world renowned, public fixed income asset managers. American Equity is headquartered in West Des Moines, Iowa with additional offices in Charlotte, NC , New York, NY , and Miami, FL. For more information, please visit www.american-equity.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201526658/en/
Steven Schwartz | Head of Investor Relations
American Equity Investment Life Holding Company®
515-273-3763 | sschwartz@american-equity.com
Source: American Equity Investment Life Holding Company
What is the ticker symbol for American Equity Investment Life Holding Company?
The ticker symbol for American Equity Investment Life Holding Company is AEL.
When will the cash dividends for Series A and Series B Preferred Stocks be payable?
The cash dividends for Series A and Series B Preferred Stocks will be payable on March 1, 2024.
What is the cash dividend per share for Series A Preferred Stock?
The cash dividend per share for Series A Preferred Stock is $371.8750000.
What is the cash dividend per share for Series B Preferred Stock?
The cash dividend per share for Series B Preferred Stock is $414.0625000.
Where are the depositary receipts for Series A and Series B Preferred Stocks listed?
The depositary receipts for Series A and Series B Preferred Stocks are listed on the New York Stock Exchange (NYSE).
When is the record date for Series A and Series B Preferred Stock shareholders?
The record date for Series A and Series B Preferred Stock shareholders is February 15, 2024.
American Equity Investment Life Holding Co
AEL Rankings
#836 Ranked by Stock Gains
AEL Stock Data
Industry
Direct Life Insurance Carriers
Sector
Finance and Insurance
Tags
Finance, Life/Health Insurance, Finance and Insurance, Direct Life Insurance Carriers
Country
US
City
West Des Moines
About AEL
fixed index annuities * retirement planning * customer service an american-owned and operated company headquartered in the heart of the midwest, american equity investment life insurance company® is a leader in the fixed indexed annuities marketplace. american equity’s growth and success is attributed to our dedication to excellent customer service and emphasis on building customer relationships. “the one who works for you!®” serves as the foundation for the way american equity does business and values its more than 500 employees. guided by our principles of excellence, we do more than sell retirement annuity products -- we are dedicated to fostering opportunity and innovation to meet the ever-changing needs and goals of retirement. we are about principles. we are the one who works for you! social media terms and conditions of use: https://www.american-equity.com/social-media-terms