3 Bank Preferreds For Consideration

By Roger Choudhury Below, I focus on banks because of consistent interest payments from their clients. Bank stocks also have been generally beaten down over the past three years, so there may be some opportunities to purchase preferred stocks at fair discounts. Additionally, for these specific issues below, you can take advantage of the 15% tax rate. I take care to mention those at or below par value or call price, which is the dollar amount that you get after maturity is reached. With the Fed targeting 0%-0.25% for the federal funds rate and slowing global economic growth, you ought to consider the following: HSBC (HBC) (Adjustable Rate Cumulative Series D) Recent Price $23.50 per share Callable? Yes, at $25.00 per share, since July 1999 Possible for 5.2% capital appreciation Preferred Stock IPO May 1994 Dividends $0.28125 per quarter All payments made since Q1 2002 Next dividend payment should be on Apr 2 Record date is on Mar 15 Current yield 4.7% S&P Rating A- 52 week trading range $18.50 – 25.79 2009 lows ~$9 (from $24) Ticker symbol (Yahoo! / Google / Fidelity) HBA-PD / HBA-D / HBA/PD The yield here is not very sexy, but the security is…