Lincoln National Corporation’s Board of Directors Declares Series C and Series D Preferred Stock Dividends

Rhea-AI Summary

Lincoln Financial Group (NYSE:LNC) has announced dividend declarations for its preferred stock. The board of directors has declared a semi-annual dividend of $1,156.25 per share on the 9.250% Fixed Rate Reset Non-Cumulative Preferred Stock, Series C, with holders receiving $46.25 per depositary share. Additionally, a quarterly dividend of $562.50 per share was declared on the 9.000% Non-Cumulative Preferred Stock, Series D, with holders receiving $0.5625 per depositary share. Both dividends will be payable on September 1, 2024, to shareholders of record as of August 15, 2024. The ex-dividend date is set for August 14, 2024.

Positive

• Declaration of dividends for preferred stockholders
• Maintenance of dividend payments indicates financial stability

Negative

• None.

Insights

Financial Analyst

Lincoln National 's recent dividend declaration for its Series C and Series D preferred stocks is a routine financial event that maintains the company's commitment to its preferred shareholders. While this news doesn't significantly alter the company's financial landscape, it does offer some insights into Lincoln's capital structure and shareholder returns strategy.

The Series C preferred stock offers a 9.250% fixed rate reset, non-cumulative dividend, payable semi-annually. With a $25,000 liquidation preference per share, each depositary share (representing 1/25th of a preferred share) will receive $46.25. This translates to an annualized yield of about 4.625% based on the $25 typical trading price of preferred stock depositary shares.

The Series D preferred stock, on the other hand, provides a 9.000% non-cumulative dividend, paid quarterly. Each depositary share (representing 1/1,000th of a preferred share) will receive $0.5625, equating to an annualized yield of about 9% based on the $25 typical trading price.

These dividend rates, particularly for the Series D stock, are relatively high compared to current market yields, reflecting the subordinated nature of preferred stocks in the capital structure and potentially Lincoln's need to offer attractive returns to maintain its capital base. However, investors should note that as non-cumulative preferred stocks, missed dividends are not required to be paid in the future, which provides some flexibility for the company in times of financial stress.

While this dividend declaration doesn't directly impact common shareholders, it does highlight Lincoln's ongoing ability to meet its preferred dividend obligations, which can be seen as a positive sign of financial stability. However, potential investors should consider these preferred stock dividends in the context of the company's overall financial health, including its ability to generate sufficient cash flow to cover all of its obligations and potential for growth.

RADNOR, Pa.--(BUSINESS WIRE)-- Lincoln Financial Group (NYSE:LNC) announced today that the board of directors of Lincoln National Corporation has declared the following preferred stock dividends:

• Semi-annual dividend of $1,156.25 per share on the corporation’s 9.250% Fixed Rate Reset Non-Cumulative Preferred Stock, Series C, $25,000 liquidation preference per share, represented by depositary shares each representing a 1/25^th interest in a share of the preferred stock, holders of which will receive $46.25 per depositary share.
• Quarterly dividend of $562.50 per share on the corporation’s 9.000% Non-Cumulative Preferred Stock, Series D, $25,000 liquidation preference per share, represented by depositary shares each representing a 1/1,000^th interest in a share of the preferred stock, holders of which will receive $0.5625 per depositary share (NYSE: LNC PRD).

The above dividends will be payable September 1, 2024 to holders of record on August 15, 2024. The ex-dividend date will be August 14, 2024.

About Lincoln Financial Group 
Lincoln Financial Group helps people to plan, protect and retire with confidence. As of December 31, 2023, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of June 30, 2024, the company had $311 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801688239/en/

Tina Madon

445-280-0488

Investor Relations

Tina.Madon@LFG.com

Sarah Boxler

215-495-8439

Media Relations

Sarah.Boxler@LFG.com

Source: Lincoln Financial Group

FAQ

What is the dividend amount for Lincoln National 's Series C preferred stock?

The semi-annual dividend for Series C preferred stock is $1,156.25 per share, or $46.25 per depositary share.

When will Lincoln National (LNC) pay the declared preferred stock dividends?

The declared preferred stock dividends will be payable on September 1, 2024.

What is the ex-dividend date for Lincoln National 's (LNC) preferred stock dividends?

The ex-dividend date for the preferred stock dividends is August 14, 2024.

How much is the quarterly dividend for Lincoln National 's Series D preferred stock?

The quarterly dividend for Series D preferred stock is $562.50 per share, or $0.5625 per depositary share.