Union Electric Co. Preferred Stock 4.56% Perpetual

Union Electric Co. Preferred Stock 4.56% Perpetual is a type of fixed-income security issued by Union Electric Company, offering investors a stable dividend yield as a percentage of its initial issue price. The primary function of this preferred stock is to provide income through regular, fixed dividend payments at a rate of 4.56% annually, making it attractive to income-focused investors seeking predictable returns without a maturity date. This perpetual stock does not have a set redemption date, meaning it can serve as a long-term investment vehicle as long as the issuer remains solvent and chooses not to call the shares back. Union Electric operates within the utility sector, a critical industry known for its stable and regulated earnings, contributing to the demand for its preferred stock. The perpetual nature of this security means it is considered equity rather than debt, impacting Union Electric’s balance sheet differently from traditional bonds. This preferred stock also typically holds a higher claim on assets and earnings than common stock, providing a certain level of capital protection but usually lacking voting rights. It plays a significant role in providing a lower-cost financing option for the issuer while offering a reliable income stream for investors.