American Equity Declares 1st Quarter 2024 Preferred Stock Dividend

Rhea-AI Summary

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.

Insights

Financial Analyst

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.

Market Research Analyst

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.

Economist

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.

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 1/1,000^th interest in a share of Series A Preferred Stock (the “Series A Depositary Shares”), the Board of Directors has declared a cash dividend of $371.8750000 per share of Series A Preferred Stock (equivalent to $0.371875000 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 1/1,000^th interest in a share of Series B Preferred Stock (the “Series B Depositary Shares”), the Board of Directors has declared a cash dividend of $414.0625000 per share of Series B Preferred Stock (equivalent to $0.414062500 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

FAQ

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.