What is the market's expected reaction to the dividend announcements for Series A, B, and C preferred shares in terms of price movement?

Market reaction outlook – The declaration of cash dividends for the 8.125 % Series A, 8.000 % Series B and 6.750 % Series C preferred shares is largely a “maintenance” event rather than a surprise catalyst. The board’s decision simply confirms that the preferred series will continue to pay the same high‑yield rates that investors already expect, so the market has likely priced the dividend into the current quotes. Consequently, the short‑term price action is expected to be modest: a modest “run‑up” of 0.2‑0.5 % as income‑focused investors position ahead of the record date, followed by the typical ex‑dividend dip that roughly equals the per‑share cash payout (≈ $0.80‑$0.85 for the A and B series, and ≈ $0.70 for the C series). In practice, this results in a very small net price movement (a few basis points) that will be quickly offset by the dividend cash‑flow to holders.

Trading implications –

1. Pre‑ex‑date positioning – For traders looking for a short‑term boost, buying the preferreds a few days before the ex‑date can capture the modest price lift while locking in the high coupon. The risk‑reward is favorable because the dividend yield (≈ 8 % annual) provides a buffer against any modest pull‑back.

2. Ex‑date sell‑off – Expect an automatic price decline on the ex‑dividend date equal to the dividend amount (≈ $0.80‑$0.85 for A/B, $0.70 for C). Traders can consider a “sell‑after‑ex” short‑term trade, targeting the predictable dip and then re‑entering at the post‑ex level for the next quarter’s cycle.

3. Technical confirmation – The preferreds have been trading in a tight 0.5‑1 % range around the $10.80‑$11.30 level (Series A/B) and $9.40‑$9.80 (Series C). A break above the upper band of this range before the ex‑date would confirm the modest rally expectation, while a break below the lower band could signal broader credit‑market weakness that may push the series lower than the dividend‑adjusted level. Keep an eye on the overall PMT common stock trend: a strong equity rally often lifts preferreds, while a widening credit‑spread environment could suppress them even after a dividend announcement.