Date updated:12-27-2008
Adjustable-rate preferred stock from Merrill Lynch, Goldman Sachs and others looks particularly attractive, as dividends could rise amid an outbreak of inflation.

-
MER
11.88 - $11.78
- 0.00
- $11.78
Merrill Lynch has several adjustable-rate issues outstanding. The largest is Series L, which trades near $8.55 a share, or 34% of last year's original offering price of $25, for a current yield of 11.70%. The dividend resets quarterly at half a percentage point above three-month LIBOR, now about 2%. But the minimum annual dividend rate is 4% of face value of $25, or $1 a share. Other Merrill preferreds with fixed rates carry similar or lower yields. The adjustable-rate issue arguably should yield less than straight preferreds, because its dividend can only go up. ONE FAN OF THE ADJUSTABLE-RATE issue says it could double in the next year if the financial crisis abates. The issue traded in June at $15. Indeed, all Merrill preferreds could trade up once the company's scheduled merger with Bank of America goes forward. The deal has been approved by shareholders of both companies and could close by year end.

-
BAC
Bk Of America Cp - $15.05
- -0.53%
- $14.94
Bank of America has a large adjustable-rate preferred issue, series E, which trades around $8.82, for a current yield of 11.34%. It, too, is at its dividend-rate floor of 4%. The Bank of America adjustable-rate preferred yields more than some of the bank's fixed-rate preferreds.

-
GS
Goldman Sachs Grp - $171.78
- -0.93%
- $171.96
Goldman Sachs has issued a series of adjustable-rate preferreds, including the series A, which trades around $10.31 for a 9.09% yield.

-
HCS
Hsbc Hldgs Perp C - $25.73
- +1.10%
- $25.41
HSBC also has several series of adjustable-rate preferreds with current yields of around 10%.

-
MET
Metlife Inc - $33.52
- -0.86%
- $33.15
MetLife 's (MET) series A adjustable-rate trades at $11.55, yields 8.66% and has a dividend floor of 4%.

-
C
Citigroup Inc - $4.06
- 0.00%
- $3.99
While preferred stock isn't as secure as debt, both banks and the government seem intent on preserving preferred dividends. As part of the bailout of Citigroup (C), for instance, the company's quarterly common dividend was cut to a penny per share. But preferred-stock dividends were maintained, as the government made a new $27 billion preferred-stock investment in the troubled bank.
- Top Professional Portfolios
- 1. Navellier & Associ...
- 2. Fidelity Contrafund - ...
- 3. Argus Management
- 4. WisdomTree Intl Consum...
- 5. Charlie Munger
- show all
- Top Do-It-Yourself Portfolios
- » John Shier
- » Joy
- » tsamanuli Portfolio 1
- » brueckenc Portfolio 1
- » Fundsonly Portfolio 1
- show all
- Most Viewed Portfolios
- » Warren Buffett
- » George Soros
- » T. Boone Pickens - BP Cap...
- » Carl Icahn
- » Renaissance Technologies
- show all
By Roberto Pedone Posted on Nov. 6, 2009 According to Jim Cramer, the bears are tellinginvestors six lies. On Wednesday’s “Mad Money” TV show, Cramer said if you ...
By Roberto Pedone Posted on Nov. 5, 2009 The traders on CNBC’s “Fast Money” told their viewers what they must know after Warren Buffett announced on Tuesday his l...
By Jonas Elmerraji Posted on Nov. 4, 2009 For investors who seek out short-squeeze opportunities, there’s no time as important as earnings season. Earnings are one of...
By Stockpickr Staff Posted on Nov. 4, 2009 Regardless of why a stock is in the news, it never hurts to hear what a professional investor has to say about it. The key is...
A. Won't matter . . . the damage, by in
large, has already been done . . . and
the government is on a current path to
accelerate the day of reckoning . . .
which can be quite profitable for some .
. . quite painful for others.
A. The only one I own : SLX,
too hard pick a winner out all of them
Here is a list of some of the biggest stocks that hit 52-week lows on Nov. 2, 2009. more
These are some of the stocks mentioned on TheStreet.com TV on Sept. 2. Click the URL below each stock to watch the videos. more
Analyst Upgrades for Nov. 2, 2009. Read more here. more











Comments not available