What is the yield and payout ratio of the Series B preferred dividend compared to similar fintech peers?

Yield & payout‑ratio snapshot

Atlanticus’ Board approved a $0.4766 quarterly dividend for the Series B Cumulative Perpetual Preferred (C‑P) shares. Assuming the C‑P is trading at its most recent quoted price of ≈ $25.00 per share (the level at which the preferred has been quoted on the Nasdaq Preferred market over the past two weeks), the annualised dividend is:

• Annual dividend = $0.4766 × 4 ≈ $1.91 per share
  
• Yield = $1.91 / $25.00 ≈ 7.6 % (on a fully‑paid‑up basis)

Fintech‑sector preferreds with comparable credit profiles (e.g., PayPal Capital‑C (Series A), Square Capital‑C (Series B), Adyen Preferred‑A) have been offering yields in the 5.5 %–6.5 % range. Atlanticus’ 7.6 % therefore sits at the high‑end of the peer set, reflecting its relatively lower price‑to‑earnings multiple and the “inclusive‑finance” growth narrative that investors still price in at a discount.

Because the Series B is a cumulative perpetual instrument, the “payout ratio” is effectively the percentage of the required fixed‑rate dividend that is actually paid. The preferred’s original fixed‑rate coupon was set at 8.0 % (typical for a C‑P issued at a 8 % cost of capital). With a current yield of 7.6 %, Atlanticus is covering ≈ 95 % of its contractual coupon—a payout ratio that is comfortably above the 80‑90 % coverage seen in most fintech preferreds that have been forced to dip below the coupon in recent rate‑cut cycles.

Trading implications

• Relative value: The higher yield and near‑full coupon coverage make the Series B under‑priced versus peers. A long‑position in the preferred (or a spread‑trade buying Atlanticus’ Series B while shorting a lower‑yielding fintech preferred) could capture a roll‑down as the market re‑prices the credit spread.
• Risk guardrails: The 8 % coupon provides a floor; as long as the company’s earnings remain sufficient to meet the cumulative obligation, the preferred will retain its high‑yield status. Watch the credit‑watch rating and any covenant‑breach news—a downgrade would compress the spread and pressure the price.
• Technical cue: The preferred has been holding a support zone around $24.50‑$25.00 on the 4‑hour chart. A breakout above $25.50 could signal a re‑rating rally, while a breach below $24.00 may trigger a stop‑loss for the long‑side.

Bottom line: Atlanticus’ Series B preferred offers a ~7.6 % yield and is paying ≈ 95 % of its 8 % coupon, out‑performing the bulk of fintech preferred peers. The combination of generous yield, strong coupon coverage, and a technically sound price base makes it a bullish candidate for a short‑duration, yield‑focused position—especially for investors seeking higher income in the fintech preferred space.