Preferred Stocks Trading Below Par
Steepest discounts to par, by size of discount · updated after each session · data as of July 24, 2026 (end-of-day, not real-time)
Most preferred stocks are issued at a par — the liquidation preference — of $25, $50, or $1,000, and a great many trade below it. For an income investor a discount does two things: it lifts the yield (you collect the full dividend on a smaller price), and it hands you upside if the issuer ever redeems the shares at par.
Below are the preferreds trading at the steepest discounts we track. But a deep discount is also the market’s warning label. Here’s how to read it.
| Symbol | Issuer | Price | Coupon | Current yield | vs Par |
|---|---|---|---|---|---|
| RC'C | Ready Capital Corp | $11.55 | 6.250% | 13.53% | -53.8% |
| RC'E | Ready Capital Corp | $12.29 | 6.500% | 13.22% | -50.8% |
| CYCCP | Cyclacel Pharmaceuticals Inc 6 Con | $5.05 | 6.000% | 11.88% | -49.5% |
| NXDT'A | NEXPOINT DIVERSIFIED REAL ESTATE T | $13.19 | 5.500% | 10.42% | -47.2% |
| CTA'A | EIDP Inc | $53.61 | 3.500% | 6.53% | -46.4% |
| HPP'C | Hudson Pacific Properties, Inc. | $14.25 | 4.750% | 8.33% | -43.0% |
| BHR'B | Braemar Hotels & Resorts Inc. | $14.26 | 5.500% | 9.64% | -43.0% |
| USB'Q | US BANCORP \DE\ | $14.35 | 3.750% | 6.53% | -42.6% |
| VNO'O | VORNADO REALTY TRUST | $14.49 | 4.450% | 7.68% | -42.0% |
| PSA'N | Public Storage | $14.77 | 3.875% | 6.56% | -40.9% |
| PSA'O | Public Storage | $14.88 | 3.900% | 6.55% | -40.5% |
| DBRG'I | DigitalBridge Group, Inc. | $14.99 | 7.150% | 11.92% | -40.0% |
| DBRG'H | DigitalBridge Group, Inc. | $15.02 | 7.125% | 11.86% | -39.9% |
| PSA'Q | Public Storage | $15.02 | 3.950% | 6.57% | -39.9% |
| STRD | Strategy | $60.15 | 10.000% | 16.63% | -39.9% |
| USB'R | US BANCORP \DE\ | $15.10 | 4.000% | 6.62% | -39.6% |
| STRK | Strategy | $60.56 | 8.000% | 13.21% | -39.4% |
| RNR'G | RENAISSANCERE HOLDINGS LTD | $15.15 | 4.200% | 6.93% | -39.4% |
| FOUR'A | Shift4 Payments, Inc. | $60.76 | 6.000% | 9.87% | -39.2% |
| PSA'R | Public Storage | $15.22 | 4.000% | 6.57% | -39.1% |
| PSA'P | Public Storage | $15.26 | 4.000% | 6.55% | -39.0% |
| DBRG'J | DigitalBridge Group, Inc. | $15.28 | 7.125% | 11.66% | -38.9% |
| BOH'A | BANK OF HAWAII CORP | $15.32 | 4.375% | 7.14% | -38.7% |
| COF'N | CAPITAL ONE FINANCIAL CORP | $15.33 | 4.250% | 6.93% | -38.7% |
| ABR'E | ARBOR REALTY TRUST INC | $15.62 | 6.250% | 10.00% | -37.5% |
“vs Par” is the discount to the $25, $50, or $1,000 liquidation preference. Yield is the current yield. Figures are end-of-day, not real-time.
Why a discount raises the yield — and offers upside
Yield is the annual dividend divided by price, so paying less for the same dividend mechanically raises your yield. A preferred with a $1.50 dividend yields 6% at its $25 par but 7.5% at $20. On top of that, if the issuer ever calls the shares, it redeems them at par — so a discount is a built-in capital gain if that day comes.
Why they’re cheap (the part that matters)
The catch: most deeply discounted preferreds are below par precisely because a call is unlikely and the market has doubts. A discount usually reflects one of three things — higher interest rates since issuance (older, low-coupon preferreds fall hardest), credit concerns about the issuer, or doubt about the dividend itself. The deeper the discount, the louder that signal. Treat it as a question to investigate on the issuer’s page, not a bargain to grab.
More on the mechanics: why preferred stocks trade below par and how calls work.
Frequently asked questions
- Why do preferred stocks trade below par?
- Usually because interest rates have risen since the shares were issued, because the market has credit concerns about the issuer, or because there’s doubt about whether the full dividend will keep being paid. Any of these pushes the price below the $25 or $50 par.
- Is it good to buy a preferred stock below par?
- A discount raises your current yield and gives you upside if the shares are ever called at par. But the discount exists for a reason, so it only makes sense after you’ve judged the issuer’s financial strength and the security’s terms.
- What happens if a preferred stock is called at par?
- The issuer redeems your shares at the par (liquidation preference). If you bought below par, you pocket the difference as a capital gain. Deeply discounted preferreds, though, are cheap partly because a call is considered unlikely.
Background reading: Why preferred stocks trade below par and Are preferred stocks safe? Screen the full universe with the screener. Nothing here is investment advice — figures are end-of-day and informational only.