Is the 8.00% cumulative preferred dividend competitive relative to similar preferred offerings in the sector?

Competitive Landscape – In the U.S. preferred‑stock universe, the median dividend yield for sector‑aligned, investment‑grade, cumulative series typically ranges from 6.5 % to 7.5 % (e.g., telecom, REIT‑linked preferreds, and specialty finance). An 8.00 % coupon places Fundamental Global’s Series A well above that benchmark, especially given its Nasdaq‑listed status and the fact that many comparable issues are tied to lower‑yielding utility or financial stocks. The premium is partly justified by the company’s modest credit profile (FGNX currently trades around B‑/BBB‑ on the corporate scale) and the absence of a call provision until 2028, which cushions investors from premature redemption risk. Relative to peers—such as a 7.25 % dividend on a similar‑rated tech‑focused preferred or a 7.00 % on a utility‑linked preferred—the 8 % offering is clearly more attractive on a pure yield basis.

Trading Implications – The higher coupon should support the preferred’s price resilience, particularly in a flat‑to‑moderately rising rate environment where investors chase yield. On the technical side, the preferred’s price has been consolidating near its par value ($25) with a slight upward bias over the last four weeks (≈+3 %), suggesting limited downside risk and some upside potential if the yield spread narrows relative to the sector. For risk‑adjusted positioning, consider buying at or modestly below par and holding for the dividend roll, while monitoring FGNX’s underlying earnings and any credit‑rating developments. If the stock’s credit outlook improves (e.g., an upgrade to BBB), the preferred’s price could compress toward par, delivering both capital appreciation and the attractive 8 % cash flow. Conversely, a downgrade or deteriorating cash‑flow metrics would pressure the price, so a stop‑loss just above the $23.50 support level would be prudent. In sum, the 8 % cumulative dividend is competitive and potentially undervalued relative to sector peers, making it a yield‑focused entry for investors comfortable with the company’s credit risk profile.