Security Benefit Sets Series B Dividend Rate Reset
The Topeka-based firm will adjust its Series B dividend rate beginning in November 2026 based on Treasury yields.
Updated on Oct. 29, 2026 in Corporate Finance
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Security Benefit has announced an upcoming dividend rate reset for its Series B preferred stock. The adjustment will go into effect in November 2026.
Why it matters
This reset is a mandatory requirement stipulated by the original terms of the Series B stock. It ensures the dividend aligns with current market conditions as defined by Treasury yields.
The new dividend rate will equal the five-year U.S. Treasury yield plus a 5.62% spread, replacing the current 6.500% rate. This new figure will apply to dividend periods running from November 2026 through November 2031.
The players
Security Benefit
Headquartered in Topeka, this financial services company manages $63.8 billion in assets and has operated for 134 years.
The details
No Series B shares will be redeemed during this reset, and shareholders are not required to take any action. The benchmark for the new rate will be calculated on November 10, 2026, using average five-year Treasury yields from the Federal Reserve H.15 publication.
Timeline
The record date for the final dividend at the current rate is October 30, 2026.
The benchmark for the new rate determination is November 10, 2026.
The dividend payment at the current 6.5% rate occurs on November 13, 2026.
The new reset rate applies to dividend periods from November 2026 through May 2027 and beyond.
Market Dynamics
The reset benchmark is determined using Treasury constant maturities reported in the Federal Reserve H.15 publication, which provides a standard for variable-rate financial instruments. Security Benefit relies on this specific data source to standardize the calculation of its variable dividend rate.
Current holders of Series B shares do not need to take any action regarding this rate adjustment. Investors should note that the Series A dividend rate remains entirely unaffected by this reset process.
The takeaway
The adjustment ensures that preferred dividend payouts remain linked to prevailing federal interest rate benchmarks. Shareholders can expect the new rate to remain in effect for the next five years until November 2031.
Further reading
For additional context on local market developments, see Corporate Finance.
Source note: This article includes information reported by InsuranceNewsNet.
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