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Investment Underground looked for preferred shares backed by heathy balance sheets. The names we came up with offer a solid yield and potential appreciation over the remainder of the year. Here is what we found:

Barclays Bank Preferred Series A (BCSA):
These shares still sell at a discount to par and yield a healthy 7.19%. With strong operating cash flows going forward, we think Barclay's is going to pay its obligations to preferred shareholders.

Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
Barclays Bank pfd. Series A BCSA 24.74 24.79 24.72 24.75 0.03 0.12 133,023 25.45 19.27 1.78 7.19

Fifth Third Capital Trust VI (FTBB): Fifth third (NASDAQ:FITB) should have no difficulty muddling along in its sleepy midwest and southern markets. The company has greater clarity on its commercial and residential portfolio and should not have difficulty paying its preferred obligations. The yield is 7.25% at par.


Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
Fifth Third Capital Trust VI 7.25% Trust FTBB 24.99 25.09 24.98 25.05 0.07 0.28 58,877 25.27 19.30 1.81 7.24


Ing Groep 8.5% Hybrids (NYSE:IGK): Ing is also in decent shape and has made tremendous inroads in the North American market at the expense of competitors. The current ratio is 1.5. We think preferred hybrid holders will be in good shape in almost all worst-case scenarios. IGK yields 8.33%.


Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
ING Groep 8.50% ING Perp. Hybrid Capital IGK 25.46 25.59 25.43 25.56 0.06 0.24 496,965 26.39 19.44 2.13 8.33


KeyCorp Convertible Series A (KEYG): KeyCorp (NYSE:KEY) should also be able to show strong results on the operating front going forward and that should translate into strong operating cash flows. We like the convertible notes yielding 6.74%. Investors can expect some appreciation in the shares if sentiment regarding KeyCorp's business continues to improve from unenthusiastic levels.


Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
KeyCorp 7.75% Perp. Conv. Series A KEYG 113.49 116.00 113.49 115.00 0.61 0.53 36,955 116.86 89.02 7.75 6.74


Santander Finance 6.5% Series 5 Preferred (STDC): We think Santander's (STD) Finance unit will have plenty of cash to pay the bills, and, as a result, investors in the Series 5 preferreds will benefit. Parent Santander has had some difficulty in the European markets but has a few smart acquisitions in the works that are having a positive impact on the business. STDC preferreds yield 7.07%.


Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
Santander Finance Preferred Unipersonal 6.50% Non-Cum Series 5 Grd pfd. Sec. STDC 23.11 23.28 22.94 23.06 0.02 0.09 100,828 28.25 16.56 1.63 7.07


Wells Fargo 8% Class A Series J (WFC.J): We like these 1/40th units of the Wells Fargo 8% Series J preferreds. We think Wells Fargo (NYSE:WFC) is among best-in-class in the banking business and agree with Warren Buffett (NYSE:BRK.A) that purchases of common shares are worth the risk. Wells preferreds J Series yield 7.09% and have further upside appreciation available as the yield falls.


Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
Wells Fargo 8.00% Cl A Series J WFC.J 28.19 28.25 28.14 28.22 0.07 0.25 141,572 28.45 24.99 2.00 7.09

Zions Bancorp Preferred 9.5% 1/40th (ZB-C): These are the 1/40th of one unit of the 9.5% perferred Series A. We think Zion's business has steadily improved over the last year and expect the company to pay preferred shareholders. A more speculative play, investors can expect some appreciation as the yield drops from the current 9.28%.


Symbol Open High Low Close Net
Chg
%Chg Vol 52 Week
High
52 Week
Low
Div Yield
Zions Bncp 9.50% Series C) ZB-C 26.03 26.03 25.93 25.96 -0.04 -0.15 89,724 26.72 21.00 2.41 9.28


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

Source: 7 Preferred Stocks to Juice Your Portfolio's Yield in 2011