Is there still a chance to buy the bank dip? You bet—with nifty yields up to 9.4%!
We’re going to avoid the regional lenders, which pains me to say because I love banking with the small guys. But I’m not looking to own them as the economy slows down.
No, nothing personal, but I’ll take the banking behemoths. None of them yield 9.4%, of course, but we engineer these payouts easily via their preferred dividends.
Preferred stocks are often referred to as stock-bond “hybrids” given that they share some characteristics of each asset. A quick breakdown:
- They represent ownership in a company (like a stock)
- They typically don’t offer voting rights (like a bond)
- They pay dividends (like a stock)
- Their dividends are typically fixed at a certain level (like a bond)
- They can rise and decline based on the performance of the underlying company (like a stock)
- But they tend to be much more stable, trading around a “par value” like a bond)
Most noteworthy, for income fanatics like you and I, is that their dividends are plump.… Read more
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