The 5th 3rd Preferred Dividend

Fifth Third Bancorp Announces Cash Dividends

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Fifth Third also declared a cash dividend on its 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I (Nasdaq: FITBI), at the rate of $414.06 per preferred share, which equates to approximately $0.41406 for each depositary share. Each depositary share represents a 1/1000th ownership interest in a share of Series I Preferred Stock. The Series I dividend is payable on March 31, 2017 to shareholders of record as of March 29, 2017.

Comment: Buy 100 shares today ... get $ 41.40 next Friday. 5.71% yield. Preferred stock tracts like a bond so as interest rates rise, the stock will decline. Image snaps from ...

Preferred stock an alternative to bonds

The ‘Preferred’ Path to Higher Returns

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Investors need to consider bond substitutes that can provide stability, safety and relatively attractive returns.

One such substitute is investment-quality preferred stocks. Preferred stock is a kind of hybrid security that sits between bonds and common stock in a company’s capitalization.

Preferreds are senior to common stock in terms of payment of dividends and claims on assets, but junior to bonds. Usually, preferreds have a fixed dividend (although some float with some fixed premium to short-term rates).

Preferreds are rated by the major credit-rating firms. Those offered by large companies carry investment-grade ratings but are rated lower than bonds because of their junior status. They do, however, have a substantial advantage over bonds for individual investors.

Bond interest is taxable at regular personal income-tax rates. Preferred stock dividends are generally taxable at long-term capital-gains rates, which under current laws are set at a maximum of 23.8% versus a maximum rate almost twice as high for interest income.

Comment: Image source Wiki 

The Wells Fargo preferred stock

Source: quantumonline.com
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The Wells Fargo preferred stocks page

Did you know this about Preferred stocks?

Preferred Ticker Symbols & Security Names

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Preferred stock ticker symbols are confusing - to everyone. There is no single system of ticker symbols in use for preferred stocks. The correct ticker symbol for a preferred stock depends on whose information you are accessing. The NYSE preferred ticker symbol format often used to refer to preferred and income securities is the xxxPRx, xxPRx, xPRx, xxPR, etc. format where the x's represent any letter. The basic problem with this NYSE ticker symbol system is that it is incompatible with the Nasdaq ticker system where symbols in the xxPRx, xPRx, xxPR formats are not preferred stocks. Therefore a single ticker symbol system incorporating the NYSE symbol system can not be used as a universal system for anyone listing both NYSE and Nasdaq preferred securities. The system even precludes any fancy programming to identify preferreds without requiring the input of the stock exchange in conjunction with the ticker symbol.

One further problem with preferred ticker symbols is that various information sources will throw in spaces in the symbols when they refer to an income security's ticker symbol. For example, you will see a xxxPRx ticker symbol referred to as xxx PR x, xxx PRx, etc. This type of reference can come from the company issuing the security, from the financial media (especially general newspapers), and even from the stock exchanges themselves. Those spaces may be fine for people but computers have no sense of humor at all concerning them and the computer just doesn't find the security you want when you add spaces to the ticker symbol.

As a result of the above, there are a considerable variety of preferred ticker symbols in use. The NYSE uses ticker symbols in the form of xxxPRx for preferred stocks.

Comment: Doesn't work for CHSCO of CHS Inc.

For a full list of the 820 preferred stocks are all known preferred stocks trading on the major stock exchanges plus most of the preferred stocks trading on the OTCBB, Pink Sheets and Other OTC markets, register and log onto quantumonline.com