2024-07-26 03:22:36 ET
Summary
- Despite the possibility of sluggishness in price and a fast come off in dividends for SLM's preference share listing SLMBP earlier this year, the fears turned out to be unfounded.
- The latest Q2 2024 results further support the stock. Loan originations continue to grow and even with a narrowing net interest margin, the EPS has inched up.
- Further, the EPS guidance has been upgraded, which is favourable for market multiples and slower than expected interest rate decline works well for the dividends.
What a difference a year makes. When I first wrote about the preferred share listing for education loan provider SLM Corporation ( SLMBP ) in August last year, its price returns were positive even as the stock’s main listing ( SLM ) was dropping. While SLMBP’s returns over the past year are still healthy, the main listing has done even better (see chart below)....
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For further details see:
SLM Corporation PFD SER B: Sustained High Dividend Yield, Earnings Outlook Upgrade