7 High-Yield Preferred Stocks to Consider

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 |  Includes: AA, AEG, BBT, DB, ES, HSBC, NLY
by: Investment Underground

By Roger Choudbury

You can smooth out the bumps and wild swings in the market through consistent dividend and interest payments, so we've screened for preferred stocks with consistent dividend payments.

These debt instruments do not ebb and flow like common shares because of their nature. These companies’ preferred stocks have shown solid performance by paying out consistent dividends alongside positive price movements. To avoid credit rating downgrades, these firms aim to make the dividend payments.

Aegon (NYSE:AEG) (7.25% Perpetual Capital Securities) has made all dividend payments since its inception in September 2007. Investors of record at March 1 will receive the next dividend payment of $0.4531. The current yield is 7.4%. This security is rated BBB by S&P. The company focuses on life insurance, general insurance, and supplemental health insurance products. It also specializes in pension and investment products. Aegon does business in the U.S. and the Americas, the Netherlands, the U.K., and other countries. The 52-week range is $5.05 to $7.80.

Annaly Capital Management (NYSE:NLY) (Series A Preferred Stock) has also made all dividend payments since its inception, in April 2004. The next dividend payment of $0.492 is for recorded investors as of March 1, payable on March 31. The current yield is 7.5%. The company manages assets on behalf of institutional and individual investors worldwide. Its principal business objective is to generate net income for distribution to investors from its investment securities and from dividends that Annaly receives from its subsidiaries. It is a real estate investment trust. The 52-week range is $24.57 to $27.40.

Alcoa (NYSE:AA) ($3.75 Serial Preferred Stock) has made all dividend payments since 2001. The company authorizes payment of $0.9375 to shareholders of record at the close of business on March 11. It is payable on April 1. The current yield is 5%. This security is rated BB by S&P. The company has a market cap of $17 billion, and is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. The 52-week range is $62.52 to $76.00.

BB&T Capital Trust VI (NYSE:BBT) (9.60% Enhanced Trust Preferred Securities) was first introduced in July 2009. The next dividend payment is scheduled for May 1 in the amount of $0.60. The current yield is 8.4%. The security is also rated BBB by S&P. The company conducts its business operations primarily through a retail branch banking model. Its offices are in North Carolina, Virginia, Florida, Georgia, Maryland, South Carolina, Alabama, Kentucky, West Virginia, Tennessee, Nevada, Texas, Washington, D.C. and Indiana. The 52-week range is $21.72 to $35.72.

Connecticut Light & Power (NU) ($3.24 Series G of 1968 Preferred Stock) has also consistently made dividend payments. The next dividend payment is on April 1 in the amount of $0.81. The current yield is 6.2%. The security is also rated BB+ by S&P. The company is a wholly owned subsidiary of Northeast Utilities System, which has a market cap of $6 billion. The 52-week range is $49.19 to $54.27.

Deutsche Bank Contingent Capital Trust V (NYSE:DB) (8.05% Trust Preferred Securities) came out in May 2008, and has made all dividend payments of $0.503125. The current yield is 7.5%. The next dividend payment is scheduled for March 31. The security is rated BBB by S&P. Deutsche Bank has a market of over $39 billion, and is a global investment bank. The 52-week range is $19.00 to $27.68.

HSBC USA (HBC) (6.50% Dep Shares Non-Cumul Preferred Stock, Series H) currently yields 6.6%. It has also made all dividend payments since inception, in May 2006. The next dividend payment is on April 1. The security is rated A- by S&P. The company is a global banking and financial services company with a market cap of $195 billion. The 52-week range is $19.48 to $25.99.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.