4 High-Yielding Financial Preferreds For Aggressive Investors

By Roger Choudhury I ran a stock screen to focus on preferreds that are a few notches below investment grade. I honed in on financial preferred stocks because of continuous payments collection from their clients. With the Fed targeting 0%-0.25% for the federal funds rate and slowing global economic growth, you ought to consider the following: Royal Bank of Scotland (RBS) (7.25% Noncumulative Series H ADR) Recent Price $20.94 per share Callable? Yes, at $25.00 per share, since Dec 2010 Possible for 17.6% capital appreciation Preferred Stock IPO Feb 1999 Dividends $0.453125 per quarter All payments made since Q1 2002 Next dividend payment should be on Apr 2 Record date is in the second week of Mar Current yield 8.5% S&P Rating BB- 52 week trading range $14.31 – 23.99 2009 lows ~$3 (from $26) Ticker symbol (Yahoo! / Google / Fidelity) RBS-PH / RBS-H / RBS/PH Despite a 2.85 debt to equity ratio, all dividend payments have been made during the post-Lehman crisis. Also, this ratio has fallen from 3.93 in 2010. In addition, in the first nine months of 2011, EBIT came in at £1,210 million, which is a turnaround from a loss of £391 million in the…