Terms

Series

Non-Cumulative Preferred Stock, Series C

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

June 15, 2025

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Secured And Unsecured Debt Of Stifel Financial Corp., Any Future Preferred Stock Expressly Stated To Be Senior; Pari Passu With: Series A Preferred Stock (6.25% Non-Cumulative), Series B Preferred Stock (6.25% Non-Cumulative), Any Other Parity Preferred Stock; Senior To: Common Stock, Any Junior Preferred 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., a St. Louis-based financial holding company, is offering depositary shares each representing a 1/1000th interest in a share of its perpetual, fixed-rate Non-Cumulative Preferred Stock, Series C, with a $25 liquidation preference per depositary share (equivalent to $25,000 per underlying preferred share) and a first optional redemption date of June 15, 2025. Because the dividends are non-cumulative, if the board does not declare a dividend for any quarterly period, that dividend is permanently lost — holders have no right to recover it in future periods. The Series C Preferred Stock sits in the middle of Stifel's capital stack: it ranks junior to all of the company's secured and unsecured debt (approximately $1.5 billion on a consolidated basis as of March 31, 2020) and pari passu with the existing Series A and Series B preferred (each 6.25%, totaling $310 million of liquidation preference). As a holding company issue, it is structurally subordinated to all creditors of Stifel's operating subsidiaries, including depositors at Stifel Bank & Trust and Stifel Bank. A regulatory capital call provision allows Stifel to redeem the entire issue within 90 days if the Series C ceases to qualify as additional Tier 1 capital under Federal Reserve rules — a risk that matters because it could force early redemption at $25 per depositary share at a time investors may not be able to reinvest at comparable yields. The coupon rate was not yet set at the time of this preliminary filing, so the precise yield at par is undetermined. Dividends are paid quarterly on March 15, June 15, September 15, and December 15, beginning September 15, 2020. For individual U.S. investors, dividends are expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate; corporate holders should be eligible for the dividends-received deduction (DRD), subject to applicable limitations. The dividend stopper prevents Stifel from paying dividends on common stock or repurchasing junior securities unless the most recently completed Series C dividend period has been fully declared and paid — however, because dividends are non-cumulative, a missed payment cannot itself block future common dividends once the lapse period is past.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Stifel cannot pay dividends on or repurchase its common stock or other junior securities unless it has declared and paid (or set aside) full dividends on the Series C Preferred Stock for the most recently completed dividend period; similarly, parity stock cannot be repurchased except pro rata unless Series C dividends are current.

Other Preferreds from Stifel Financial Corporation

Div Score Breakdown

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