PG&E Preferred Dividend Play: A Golden Opportunity for Steady Income

Investors seeking reliable income streams in this volatile market environment, take note: Pacific Gas and Electric Company’s (PG&E) 5% Series A preferred stock is offering a rare combination of safety, yield, and strategic timing. With its declared $0.3125 quarterly dividend—payable on August 15, 2025—this preferred stock is a screaming buy for income-focused investors. Let’s break down why PG&E.PRE is a must-own right now.

The Dividend History: Stability After the Storm

PG&E’s preferred stock dividends were suspended during its bankruptcy in 2018–2024, but this era of uncertainty is over. The May 22, 2025, dividend declaration marks PG&E’s full return to financial health. The 5% Series A has been paying its $0.3125 quarterly dividend consistently since resuming payments in 2025, and shareholders of record as of July 31 will pocket their next payout in August.

This stock’s dividend is contractually protected, ranking ahead of common stockholders in the capital structure. Even in past crises, preferred dividends were prioritized once the company stabilized—a critical feature for income investors.

Why the Yield is a steal: 7.1% vs. Market Rates

The 5% Series A is trading at $17.60, a 31.65% discount to its $25.75 liquidation preference (as of May 23, 2025). This discount isn’t just a price break—it’s a built-in margin of safety. At this price, the annualized yield soars to 7.1%, far exceeding its original 5% coupon and trouncing the average utility common stock yield (which hovers around 2.54% historically).

Compare this to broader utility preferreds: While some riskier issues like Via Renewables’ preferred (VIASP) offer double-digit yields (11.23%), they come with higher volatility. PG&E’s 7.1% yield sits in the sweet spot—high enough to satisfy income needs, safe enough to sleep at night.

Act Now: Time is Ticking

The July 31 record date is looming, and shares must be owned by then to qualify for the August 15 payout. Here’s why urgency matters:
- Supply constraints: PG&E’s preferred stocks trade at low volumes (avg. 413 shares/day), meaning liquidity could tighten as the ex-dividend date approaches.
- Rate environment: The Federal Reserve’s pause on rate hikes has created a yield-hungry investor frenzy. PG&E’s discounted preferred will only get pricier as money floods into safe, income-producing assets.

The Bottom Line: Income with a Safety Net

PG&E’s 5% Series A preferred offers three critical advantages:
1. Predictable cash flow: Quarterly dividends since 2025, with no suspension in sight.
2. Seniority: Preferred dividends get paid before common shareholders.
3. Upside potential: If the stock rebounds toward its $25.75 liquidation value, investors could see both capital gains and rising yields.

This isn’t a gamble—it’s a strategic allocation to a utility giant that’s stabilized post-bankruptcy. For retirees, endowments, or anyone needing steady income, this is a buy now, hold forever opportunity.

Final Call to Action:
Don’t miss the August 15 payout. Buy PG&E.PRE shares by July 31 to lock in this 7.1% yield. This is the kind of “set it and forget it” investment that builds wealth quietly while the market noise fades.

Disclosure: This is not financial advice. Consult your advisor before investing.