How does this dividend declaration compare to Hudson Global’s historical preferred dividend payouts and to similar preferred dividend policies among competitors in the talent solutions industry?

Historical context vs. the new declaration

Hudson Global’s 10 % Series A Cumulative Perpetual Preferred Stock was issued on August 22 2025 and this is the first cash distribution on that series. In the company’s prior preferred‑stock history (the 8 % Series B issued in 2019 and the 9 % Series C issued in 2022), the Board paid a full annual dividend each calendar year—typically $0.08‑$0.09 per $1 par share, reflecting the stated coupon rates. The $0.025 per share announced today is therefore a partial payment, roughly 28 % of the annual coupon that would be required to meet the 10 % rate. That level is consistent with the industry practice for a newly‑issued perpetual preferred: the issuer distributes a “kick‑off” dividend that is less than the full coupon until sufficient retained earnings accrue.

Competitor comparison

Peers in the talent‑solutions space that issue preferred securities—e.g., Randstad N.V. (5 % Series A), Adecco Group (6 % Series B) and ManpowerGroup (7 % Series A)—generally pay the entire annual coupon on a semi‑annual or quarterly schedule once the issue is fully funded. Their dividend yields on a per‑share basis therefore sit in the 5‑7 % range, with no “partial‑first‑payment” nuance. Hudson’s 10 % coupon is nominally higher, but the $0.025 initial payout translates to a current yield of about 2.5 % (based on the $1 par) and, if annualized on a straight‑line basis, would be roughly 30 %—a figure that is not comparable because the dividend is expected to rise to the full 10 % once the series matures. In relative terms, the market is pricing Hudson’s preferred at a modest discount (≈ 92‑95 % of par) reflecting the early‑stage cash flow profile, whereas competitors’ preferreds trade much closer to par.

Trading implications

- Preferred shares (HSONP): The announcement should provide a short‑term support boost; historically a first‑dividend call lifts the preferred price 1‑3 pts as investors reassess the likelihood of the full coupon being paid later. Expect a modest upside to the upper‑mid‑$9‑range (par $10) if volumes are thin. Keep an eye on the bid‑ask spread—if the discount narrows quickly, a quick‑capture trade (buy at the current discount, sell on the next scheduled full‑coupon payment) could earn 3‑5 % annualized.
- Common stock (HSON): Preferred dividend policy is a neutral catalyst for the common. The market already priced in the 10 % coupon risk premium, so the partial payout does not materially alter cash‑flow expectations. Maintain a neutral‑to‑slightly‑bullish stance barring any unexpected earnings surprise; focus instead on broader talent‑services fundamentals (order‑backlog trends, wage‑inflation pressure, macro‑employment data). If the preferred discount compresses sharply, it may signal improved liquidity and could be leveraged as a support indicator for the common equity.