SLM's Series B Preferred Stock Exceeds 8.5% Yield Threshold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: NASDAQ.COM
SLMBP Performance: The one-year performance of SLMBP shares is compared to SLM shares, with SLMBP currently trading flat while SLM shares are down approximately 14.2%.
Dividend History: A chart detailing the historical dividend payments for SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, is provided.
Current Trading Status: On Tuesday, SLMBP shares are noted to be stable, contrasting with the decline in common shares of SLM.
Author's Views: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
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Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 22.790
Low
23.00
Averages
31.09
High
37.00
Current: 22.790
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Expectations Decline: The anticipated revenue for Q1 is $355.87 million, representing a 38.7% year-over-year decrease, indicating challenges the company faces in the current economic environment, potentially affecting its future growth prospects.
- Performance Forecast Changes: Over the past year, SLM has beaten EPS estimates 50% of the time and revenue estimates 100% of the time, suggesting good management of expectations; however, the recent downward revision in revenue forecasts may raise market concerns.
- Revision Trends: In the last three months, EPS estimates have seen 8 upward revisions with no downward adjustments, while revenue estimates have experienced 3 downward revisions, indicating a discrepancy that could affect investor confidence in the company's future performance.
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- Common Stock Dividend: The company also declares a common stock dividend of $0.13 per share, indicating its ability to create value for shareholders based on stable earnings, which reflects the company's healthy financial status.
- Payment Date: Both dividends will be paid on June 15, 2026, to shareholders of record as of June 4, 2026, ensuring timely returns for investors and further solidifying trust between the company and its shareholders.
- Education Financing Leader: As a leader in private student lending, Sallie Mae supports access to education and lifelong learning by providing financing and resources, showcasing the company's strategic significance in the education sector.
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- Loan Awareness Gap: 20% of families were unaware that loans could be included in their aid packages, and 19% believed that any loans offered had to be used, reflecting a general misunderstanding of financial aid terms that may impact family decision-making processes.
- Aid Selection Strategy: Sallie Mae advises families to focus on the proportion of scholarships and grants rather than just the total dollar amount to avoid future repayment burdens, a strategy that helps families make more informed financial decisions.
- Information Access Channels: Families can obtain more information through school financial aid offices and online resources to understand how to compare financial aid offers from different schools, ensuring they plan for educational costs effectively and choose the best-fit institution.
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- Financial Aid Transparency: A survey revealed that only 36% of families reported their financial aid letters included the full cost of attendance, and just 27% clearly outlined expected out-of-pocket costs, indicating many families struggle to understand financial aid, potentially leading to poor choices.
- Loan Awareness Issues: The survey also found that 20% of families were unaware that loans could be part of their aid package, and 19% believed any loans offered had to be used, reflecting a widespread misunderstanding of financial aid content that could impact decision-making.
- Aid Selection Strategy: Sallie Mae advises families to focus on the proportion of scholarships and grants rather than just the total dollar amount, as a smaller aid package with more free money may cost less over time, helping families make more informed choices.
- Importance of Proactive Communication: Families are encouraged to communicate with the school's financial aid office before accepting offers to learn if their aid proposal can be reconsidered, especially if their financial situation changes, as this proactive approach can lead to more suitable aid solutions.
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- Borrower Deadline: Borrowers must select a new repayment plan by July 1, 2026, as communicated by the Department of Education, with those failing to do so automatically placed into the Standard Repayment Plan, which may result in higher monthly payments than under SAVE.
- Interest Resumption Impact: With interest resuming for SAVE borrowers in August 2024, the average loan balance of $57,000 at a 6.7% interest rate means borrowers have seen their debt increase by over $2,500 since interest accrual resumed, exacerbating their financial burden.
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- Earnings Announcement Date: Sallie Mae (SLM) is set to release its Q1 2023 earnings on April 23 after market close, with a consensus EPS estimate of $1.20, reflecting a 14.3% year-over-year decline, which may negatively impact investor sentiment.
- Revenue Expectations Decline: The anticipated revenue for Q1 is $355.87 million, representing a 38.7% year-over-year decrease, indicating challenges the company faces in the current economic environment, potentially affecting its future growth prospects.
- Performance Forecast Changes: Over the past year, SLM has beaten EPS estimates 50% of the time and revenue estimates 100% of the time, suggesting good management of expectations; however, the recent downward revision in revenue forecasts may raise market concerns.
- Revision Trends: In the last three months, EPS estimates have seen 8 upward revisions with no downward adjustments, while revenue estimates have experienced 3 downward revisions, indicating a discrepancy that could affect investor confidence in the company's future performance.
See More
Sallie Mae Announces Q2 2026 Dividend for Preferred and Common Stock
- Preferred Stock Dividend: Sallie Mae announces a Q2 2026 preferred stock Series B dividend of $1.4269028 per share, reflecting the company's commitment to shareholder returns and enhancing investor confidence.
- Common Stock Dividend: The company also declares a common stock dividend of $0.13 per share, indicating its ability to create value for shareholders based on stable earnings, which reflects the company's healthy financial status.
- Payment Date: Both dividends will be paid on June 15, 2026, to shareholders of record as of June 4, 2026, ensuring timely returns for investors and further solidifying trust between the company and its shareholders.
- Education Financing Leader: As a leader in private student lending, Sallie Mae supports access to education and lifelong learning by providing financing and resources, showcasing the company's strategic significance in the education sector.
See More
Sallie Mae Offers Guidance and Resources for Financial Aid Comparison
- Financial Aid Transparency: Only 36% of families reported that their financial aid letters included the full cost of attendance, and just 27% clearly outlined expected out-of-pocket costs, indicating that many families face challenges in understanding and comparing financial aid, which could lead to poor choices.
- Loan Awareness Gap: 20% of families were unaware that loans could be included in their aid packages, and 19% believed that any loans offered had to be used, reflecting a general misunderstanding of financial aid terms that may impact family decision-making processes.
- Aid Selection Strategy: Sallie Mae advises families to focus on the proportion of scholarships and grants rather than just the total dollar amount to avoid future repayment burdens, a strategy that helps families make more informed financial decisions.
- Information Access Channels: Families can obtain more information through school financial aid offices and online resources to understand how to compare financial aid offers from different schools, ensuring they plan for educational costs effectively and choose the best-fit institution.
See More
Sallie Mae Offers Guidance and Resources for Financial Aid Comparison
- Financial Aid Transparency: A survey revealed that only 36% of families reported their financial aid letters included the full cost of attendance, and just 27% clearly outlined expected out-of-pocket costs, indicating many families struggle to understand financial aid, potentially leading to poor choices.
- Loan Awareness Issues: The survey also found that 20% of families were unaware that loans could be part of their aid package, and 19% believed any loans offered had to be used, reflecting a widespread misunderstanding of financial aid content that could impact decision-making.
- Aid Selection Strategy: Sallie Mae advises families to focus on the proportion of scholarships and grants rather than just the total dollar amount, as a smaller aid package with more free money may cost less over time, helping families make more informed choices.
- Importance of Proactive Communication: Families are encouraged to communicate with the school's financial aid office before accepting offers to learn if their aid proposal can be reconsidered, especially if their financial situation changes, as this proactive approach can lead to more suitable aid solutions.
See More
David Einhorn Emphasizes Capital Protection Amid Market Rally
- Capital Protection Priority: David Einhorn emphasized in his latest investor letter that despite the market rally driven by geopolitical optimism, capital preservation remains his top priority, warning that investors may be underestimating potential downside risks.
- Market Rebound Overview: The S&P 500 has fully erased losses incurred since the onset of the Iran war, and despite the breakdown of U.S.-Iran negotiations, investors remain optimistic about a potential deal, fueling continued market gains.
- Fund Performance Insight: Greenlight Capital reported a 6.5% return in Q1, outperforming the S&P 500's 4.4% decline, yet Einhorn noted the firm maintains relatively low gross and net exposure, reflecting caution regarding valuations and the broader macroeconomic backdrop.
- Investment Strategy Adjustments: Einhorn mentioned that Greenlight had already been operating with low exposure at the conflict's onset and added a long position in October oil futures, although this investment has only seen modest gains as the market largely expects any supply disruptions to be temporary.
See More
Student Loan SAVE Plan Set to End Soon
- End of SAVE Plan: The Trump administration's announcement to terminate the SAVE plan affects approximately 7.5 million borrowers, who will receive guidance on enrolling in a new repayment plan, highlighting the legal challenges that led to the plan's blockage by a federal appeals court, impacting borrowers' repayment options and financial planning.
- Borrower Deadline: Borrowers must select a new repayment plan by July 1, 2026, as communicated by the Department of Education, with those failing to do so automatically placed into the Standard Repayment Plan, which may result in higher monthly payments than under SAVE.
- Interest Resumption Impact: With interest resuming for SAVE borrowers in August 2024, the average loan balance of $57,000 at a 6.7% interest rate means borrowers have seen their debt increase by over $2,500 since interest accrual resumed, exacerbating their financial burden.
- Diverse Repayment Options: Borrowers can enroll in existing income-driven repayment plans or wait for the new Repayment Assistance Plan, which will set monthly payments between 1% and 10% of income, demonstrating the government's flexibility in adjusting student loan policies to meet borrower needs.
See More
