Why would anyone own the preferred shares of Banco Santander (STD), writes John Hempton. They...

|About: Banco Santander S.A. (SAN)|By:, SA News Editor

Why would anyone own the preferred shares of Banco Santander (STD), writes John Hempton. They yield 10%, but offer no chance of capital appreciation. Do the holders believe Spain will do as the U.S., and bail out the banks at no cost to the preferred? It won't happen, says Hempton. Better to own the common - with an earnings yield of 40% and at least the chance of capital gain.