J. Michael Jones
Introduction
Synovus Financial (NYSE:SNV) is a regional bank with a presence in the American southeast. In addition to common shares, the bank also offers two issuances of preferred stock, a floating rate Series D (
Synovus Financial: Series E Dividends Provide Best Yield Despite Premium Price
Summary
- Synovus Financial is managing interest rate volatility well, with net interest income growing despite no loan growth and increasing long-term debt.
- The Series E preferred shares are more attractive due to their fixed rate until 2029, offering stability amid projected rate cuts.
- Risks to the bank include high exposure to nonowner occupied commercial real estate and nonaccrual loans, potentially impacting future earnings.
- Despite trading at a premium, Series E preferred shares are a strong option for income investors, with dividends in little to no danger.
About My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SNV.PR.E either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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