For income investors that are looking for high dividend stocks and are looking to diversify into banking stocks, you won't receive much of a yield from JPMorgan Chase (JPM), which pays about half a percent.
But there is another safer way to invest in the company and get a much higher yield. JP Morgan also has a preferred stock called JPMorgan Chase Capital XI 5.875% Capital Securities Series K (JPM-PK). This security currently sells for 24.95, a slight discount to its par value and maturity amount of $25.
The annual dividend payout is approximately 1.47 per year, payable quarterly, giving the stock a yield of about 5.9%. The stock is callable at any time at par and matures in June of 2033.
Also check out How to Get a 6% Yield from Chesapeake Energy, How to Get a 4.9% Yield from Goldman Sachs, and Lucent Pays a Yield of 13%.
If you want a list of about 20 adjustable rate preferreds, with yields ranging from 1.83% to 8.59%, go to WallStreetNewsNetwork.com.
Disclosure: Author does not own any of the above.