Sunday, September 19, 2010

Get a 6% Yield from JP Morgan Chase

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

Disclosure: Author does not own any of the above.


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