What is the dividend yield and payout schedule for the Series A preferred shares compared to similar securities in the industry?

Dividend Yield & Payout Schedule

Liberty Broadband’s Series A cumulative redeemable preferred shares (ticker LBRDA) carry a fixed quarterly cash dividend of $0.625 per share. With a $25 par value, this equates to an annualized dividend of $2.50, or roughly 10 % on the par amount. The market price of the shares has been trading in the $22‑$24 range, which pushes the current yield to roughly 10‑11 % on a price‑basis basis (e.g., $2.50 ÷ $23 ≈ 10.9 %). The payout schedule is strictly quarterly, and because the security is cumulative, any missed payment is accrued and must be paid before any common equity dividend.

When we line‑up LBRDA against comparable preferreds in the sector—e.g., telecom‑linked preferreds such as AT&T’s 5.5 % series, Verizon’s 5.75 % series, and high‑yield corporate preferreds (7‑9 % range)—Liberty Broadband’s yield is significantly higher. The only securities that consistently top the 10 %‑plus mark are REIT‑backed preferreds and distressed‑credit preferreds, which typically carry higher credit‑risk profiles. LBRDA’s credit quality is bolstered by its parent’s sizable cash‑flow from the Charter‑controlled broadband assets, but the redeemable feature (the issuer can call the shares at par after a set date) introduces call‑risk that can cap upside if rates fall.

Trading Implications

• Income‑focused buyers: The 10 %+ yield and quarterly cadence make LBRDA an attractive “high‑yield” income play, especially for investors seeking diversification away from pure REIT or telecom preferreds.
• Price risk & call risk: Because the security is callable, a declining interest‑rate environment could prompt Liberty Broadband to redeem the shares, potentially forcing a roll‑down to a lower‑yielding issue. Traders should monitor the call protection date and the company’s balance‑sheet flexibility.
• Relative value: Compared with industry peers, LBRDA is priced at a discount to its implied 10 %+ yield, suggesting a mis‑pricing opportunity if credit concerns remain limited. A long position could be justified for the next 6‑12 months, with a stop‑loss near the call‑price floor (par $25) to protect against a sudden redemption or credit downgrade. Conversely, short‑term shorts may be considered if the market re‑prices the security lower on rising rates or heightened credit‑risk sentiment.

In summary, LBRDA’s Series A preferred offers a higher-than‑average dividend yield and a quarterly, cumulative payout, positioning it as a premium income vehicle relative to other corporate and telecom preferred securities. The key trade‑off is the call feature and the underlying credit outlook—both of which should be factored into any position sizing and risk‑management plan.