There’s been a lot of speculation regarding whether or not the banks that received TARP funding would be allowed to issue dividends.
However, if you’re willing to take a little risk for a guaranteed dividend, then you may be interested in the preferred stocks offered by many of these banks.
Preferred stocks generate a dividend that is typically tied to a company’s cash and earnings. This makes them a more stable investment when compared to common stock offerings which are typically tied to a company’s future cash flow considerations.
Which brings us back to the preferred stocks.
Investment Undergound recently reported on the following banks’ preferred stock offerings.
The yields are noteworthy considering that interest rates remain at historically low levels, and look to remain that way for the foreseeable future. However, you should always perform your own due diligence before you decide to invest.
Bank of America Series I Preferred (BAC-I)
Current yield: 7%
52-week range: $19.43 – $24.55.
Next dividend payment: April 1
Ex-dividend date: March 11.
Barclays Series D Preferred ADR (BCS.PD)
Current yield: 7.7 percent.
52-week range: $21.65 – $26.97
Next dividend payment: March 15
Ex-dividend date: February 25
NOTE: Barkley’s beat earnings expectations on February 15.
Citigroup Series Q Preferred (C-Q)
Current yield: 6.25 percent.
Next dividend payment: March 27
JP Morgan Chase Series J Preferred (JPM-I)
Current yield: 7.8 percent.
52-week range: $25 – $29.
Next dividend payment: March 1 (this stock already went ex-dividend)
Fifth Third Bank Series C Preferred (FTB-C)
Current yield: 8.4 percent.
52-week range: $25 – $29.
This stock just paid a dividend on February 15.
Regions Financial Series Z Preferred (RF-Z)
Current yield: 8.4 percent.
52-week range: $21 – $26.76
Next dividend payment: March 15.
Ex-dividend date: March 11 (at latest)
KeyCorp Series F Preferred (KEY-F)
Current yield: 7.7 percent.
52-week range: $21.25-$26.32.
Next dividend payment: March 15
