By Roger Choudhury
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. In fact, over the past 5 days, these shares have been remarkably stable, while the markets have rocked back and forth. To avoid credit rating downgrades, these firms aim to make the dividend payments and almost always prioritize preferred share dividends over those for common stock.
HSBC (HBC) (8.125% Exchangeable Perpetual Subordinated Capital Securities) currently yields 7.5%. It has also made all dividend payments since inception in April 2008. The next dividend payment is on April 15 for investors of record on March 31. The security is rated A by S&P. The company is a global banking and financial services company with a market cap of $175 billion. The 52 week range is $24.23 - $28.38. The Yahoo! Finance ticker symbol for this security is HCS.
JP Morgan (JPM) (Capital X, 7.00% Capital Securities Series J) currently yields 6.9%. It has made all dividend payments since inception in January 2002. The next dividend payment is on May 15. It is also rated BBB+ by S&P. The 52 week trading range is $19.28 - $26.25. Its Yahoo! Finance ticker symbol is JPM-PJ.
US Bank (USB) (7.875% Dep Shares Series D Non-cumulative Perp Preferred Stock) currently yields 7.0%. With a good reputation, the company has made all dividend payments on these shares since their inception in March 2008. The next dividend payment is on April 15. The rating on this security is BBB+ by S&P. The 52 week range is $25.00 - $28.99. The ticker symbol on Yahoo! Finance is USB-PL.
Goldman Sachs (GS) (6.20% Dep Shares Non-cumul Preferred, Stock Series B) currently yields 6.2%. This company has also made all dividends payments since inception of these shares in October 2005. The next dividend payment is scheduled to occur on May 10. The rating attached to this is BBB- by S&P. The 52 week range is $21.55 - $25.59. Its Yahoo! Finance ticker symbol is GS-PB.
Pacific Gas & Electric (PCG) (6.00% First Preferred Stock Nonredeemable) has a dividend yield of 5.3%. These shares have paid out quarterly dividend payments since May 2004. The next dividend payment is on May 15. S&P rated this security as BBB-. The 52 week range is $22.15 - $26.80. The Yahoo! Finance ticker symbol is PCG-PA.
PG&E Corporation conducts its business principally through Pacific Gas and Electric Company (“Utility”), operating in northern and central California. The Utility engages in the businesses of electricity and natural gas distribution; electricity generation, procurement, and transmission; and natural gas procurement, transportation, and storage. The Utility served approximately 5.2 million electricity distribution customers and approximately 4.3 million natural gas distribution customers at December 31, 2010.
M&T Bank (MTB) (Capital Trust IV, 8.50% Enhanced Trust Preferred Securities) has a dividend yield of 7.9%. Since their inception in March 2008, these shares have paid out dividend payments. The most recent occurred on March 15, and the next payment would be on June 15. Moody’s gave this security a rating of Baa2. The 52 week range is $24.85 - $28.35. The ticker symbol is MTB-PA on Yahoo! Finance. The company has a market cap of $10.5 billion.
PNC Financial (PNC) (9.875% Dep Shares Fixed-Float Non-cum Pfd Stock F) yields 8.5%, currently. These shares first paid out dividends on February 1, 2009. The next dividend payment would be on May 1, 2011. The rating on these shares is BBB. The 52 week range is $26.50 - $30.44. The ticker symbol on Yahoo! Finance is PNC-PL. This company has a market cap of $33 billion. For 7 high-yielding preferred stock recommendations, click here.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.