Terms

Series

Non-Cumulative Preferred Stock, Series B

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

March 15, 2024

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Secured And Unsecured Debt Of Stifel, Any Preferred Stock Expressly Stated To Be Senior; Pari Passu With: Series A Preferred Stock (6.25% Non-Cumulative Perpetual Preferred Stock, Series A), Any Other Parity Preferred Stock; Senior To: Common Stock, Any Other Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Prospectus Summary

Stifel Financial Corp. is offering depositary shares, each representing a 1/1,000th interest in a share of its perpetual Non-Cumulative Preferred Stock, Series B, with a $25 liquidation preference per depositary share (underlying share liquidation preference of $25,000). The coupon rate was not yet set at the time of this preliminary filing, but dividends are paid quarterly in arrears on March 15, June 15, September 15, and December 15, beginning June 15, 2019, with the first call date on March 15, 2024 at $25 per depositary share. This series is non-cumulative, meaning that if Stifel's board does not declare a dividend for any quarter, that dividend is permanently lost and investors have no legal claim to recover it in future periods. The Series B Preferred Stock ranks senior to Stifel's common stock and any future junior stock, and pari passu with the existing 6.25% Series A Preferred Stock (aggregate liquidation preference of $150 million). It is junior to all secured and unsecured debt obligations of Stifel — approximately $1.8 billion on a consolidated basis as of December 31, 2018. Critically, because Stifel is a holding company that conducts operations through subsidiaries (including Stifel Bank & Trust and Stifel Bank), the depositary shares are structurally subordinated to all liabilities of those operating subsidiaries. A regulatory capital call provision allows Stifel to redeem the entire series within 90 days if the preferred stock loses its qualification as additional Tier 1 capital under Federal Reserve rules — a meaningful risk for investors seeking a long-term, stable income instrument, as it could force early redemption at par. The specific dividend rate was not disclosed in this preliminary prospectus. Dividends are expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual U.S. holders, and for the dividends-received deduction (DRD) for corporate holders, subject to applicable holding period and other conditions. Payment dates are March 15, June 15, September 15, and December 15, with record dates falling on the 15th calendar day before each payment date. The dividend stopper provision bars Stifel from paying dividends on common stock or repurchasing junior securities if Series B dividends for the most recently completed period have not been paid in full, though because dividends are non-cumulative and discretionary, there is no obligation for the board to declare them in the first instance.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Stifel has not paid full dividends on the Series B Preferred Stock for the most recently completed dividend period, it cannot pay dividends on or repurchase its common stock or other junior securities; parity preferred stock redemptions are also restricted. Conversely, if senior preferred stock exists and its dividends are not fully paid, no dividends may be declared or paid on the Series B Preferred Stock.

Other Preferreds from Stifel Financial Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 48 (Average)