Terms

Series

Fixed Rate Noncumulative Perpetual Preferred Stock, Series H

Liquidation Preference

$25.00

Coupon Rate

5.1%

Rate Type

Fixed

Annual Dividend

$1.27

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 15, 2024

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Other Non-Equity Claims; Pari Passu With: Fixed Rate Noncumulative Perpetual Preferred Stock, Series A, Fixed Rate Noncumulative Perpetual Preferred Stock, Series D, Fixed Rate Noncumulative Perpetual Preferred Stock, Series E, Fixed Rate Noncumulative Perpetual Preferred Stock, Series F, Fixed Rate Noncumulative Perpetual Preferred Stock, Series G; Senior To: Common Stock, All Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

46,000,000

Prospectus Summary

The Allstate Corporation is offering 46,000,000 Depositary Shares (NYSE: ALL PR H), each representing a 1/1,000th interest in a share of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series H, with a $25 liquidation preference per Depositary Share and a fixed annual coupon of 5.10% ($1.275 per Depositary Share annually, or approximately $0.31875 per quarter). Dividends are non-cumulative: if the board does not declare a dividend for any given quarter, that dividend is permanently lost and Allstate has no obligation to make it up in future periods — a meaningful risk for income-oriented investors compared to cumulative structures. The Series H Preferred ranks senior to Allstate's common stock and all junior equity, and on a parity with five existing series of preferred stock (Series A, D, E, F, and G). It is junior to all of Allstate's debt and non-equity obligations. As a holding company issuance, it is structurally subordinated to all liabilities of Allstate's insurance subsidiaries. The stock is callable at $25.00 per Depositary Share on any dividend payment date on or after October 15, 2024. Prior to that date, a special redemption at $25.00 is available within 90 days of a 'regulatory capital event' (if the Preferred Stock loses its qualification as capital under applicable group capital standards), and at $25.50 within 90 days of a 'rating agency event' (if a rating agency reduces or shortens the equity credit assigned to the stock). At the $25 offering price, the effective yield is 5.10% annually. Dividends are paid quarterly on January 15, April 15, July 15, and October 15 (commencing October 15, 2019), with a record date falling on the 15th calendar day before each payment date. For individual U.S. holders meeting applicable holding period requirements, dividends are expected to qualify for the preferential 15%/20% qualified dividend income (QDI) tax rate; corporate holders should be eligible for the dividends-received deduction (DRD) subject to applicable requirements. The dividend stopper provision prevents Allstate from paying dividends on or repurchasing common or junior stock if full Series H dividends for the preceding period have not been paid, but because the dividends are non-cumulative, the stopper itself offers limited protection — a missed dividend cannot be reclaimed.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Allstate has not paid full dividends on the Series H Preferred Stock for the preceding dividend period, it cannot pay dividends on, or repurchase, common stock or any other junior stock, and cannot repurchase parity preferred stock except on a pro rata basis alongside the Series H.

Other Preferreds from The Allstate Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 75 (Strong)