How will the $0.025 per share partial cash dividend affect the market price and yield of Hudson Global’s 10% Series A Cumulative Perpetual Preferred Stock?

Market‑price impact

When a preferred security goes “ex‑dividend,” the market typically prices the security about the size of the dividend lower. A $0.025‑per‑share cash payout on Hudson’s 10 % Series A Cumulative Perpetual Preferred Stock is tiny relative to its quoted price (the series usually trades near its $25 par value). Consequently, the price adjustment on the September 1 record‑date will be on the order of a few‑cents – essentially invisible on a chart and unlikely to trigger any meaningful technical break. Any short‑term sell‑off will be modest and quickly absorbed by the stock’s relatively thin, low‑volatility trading range.

Yield implications

The 10 % coupon on the Series A preferred is a fixed‑rate, cumulative obligation that is paid on the par value of $25 per share (≈ $2.50 annual dividend). Because the dividend is paid out of the same $2.50 coupon, the $0.025 partial payment does not materially change the annual cash flow. The only way the yield moves is through a price change: a marginal price drop of $0.025 would raise the current‑yield from 10.00 % to about 10.10 % – a negligible shift that will not alter the long‑term yield profile. In other words, the dividend is a cosmetic cash‑return rather than a driver of the preferred’s 10 % yield.

Actionable trading view

Short‑term: Expect a very small, temporary price dip on the ex‑dividend date. Traders can look for a “buy‑the‑dip” opportunity if the spread narrows below the $25 par level, as the underlying 10 % coupon remains attractive and the dividend signal reinforces credit quality.

Medium‑term: The series’ price will be dominated by the 10 % cumulative coupon and the company’s credit fundamentals rather than the $0.025 payout. Holding the preferred through the dividend date should not materially affect the expected 10 % yield, so positioning for the coupon (e.g., buying at a modest discount to par) remains the primary strategy.