Seeking Alpha

The hunt for yield: A JPMorgan (JPM) plan to issue $500M in preferred stock is scrapped in...

The hunt for yield: A JPMorgan (JPM) plan to issue $500M in preferred stock is scrapped in favor of a $1.1B sale. The shares were priced to yield 5.5% vs. an expected range of 5.5-5.625%. The bank wrote last week (via Michael Sedacca) it was seeing evidence the search for yield was spilling over into dividend/preferred stocks. Indeed.
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Comments (5)
  • youngman442002
    , contributor
    Comments (5129) | Send Message
    I said it before..these crooks will "invent" products to sell for the yield will be junk...and it will not turn out well.....but commissions and fees will be paid...hefty commissions and fees for sure..
    20 Aug 2012, 03:56 PM Reply Like
  • bbro
    , contributor
    Comments (10752) | Send Message
    Callable after 5 years....
    20 Aug 2012, 03:58 PM Reply Like
  • johnofarizonaoregon
    , contributor
    Comments (285) | Send Message
    Preferred stock is not a new invention... I learned about preferred stock in high school, decades ago.


    For anyone seeking yield, preferred stock is much lower risk than common stock.
    20 Aug 2012, 05:08 PM Reply Like
  • garyt01
    , contributor
    Comments (108) | Send Message
    I would buy some of this.
    20 Aug 2012, 10:10 PM Reply Like
  • jakedawg
    , contributor
    Comments (20) | Send Message
    I have jpmpri (symbol @ fidelity). It's currently $26.43 w/ yld of 8.16%. I would guess that JPM plans to pay this off with the new offering??? Does anyone know?
    26 Aug 2012, 01:14 PM Reply Like
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