Best Idea Archives
Our Best Idea: Securities that pay a 7.2% Dividend
Below you will find the graph of our best idea, investing in bank issued securities called trust preferred securities that yield 7.2% on average in dividends. These public traded securities are from the largest banks in the US and Europe. The graph shows the current yields on our basket of trust preferred securities, BBB Corporate bonds, and 10 Year US Treasury bonds. The yield gap is quite dramatic. Besides, it is hard to like stocks in this volatile market. The trust preferred securities rank higher in the bank’s capital structure than the traditional preferred securities, which provides for a safer dividend payment and better credit protection. Taking advantage of this 7.2% current yield is our best idea.