Citizens Financial's Series E preferred shares yield 7.28%, backed by strong Q2 results and dividend safety.

Citizens Financial Group's fixed rate Series E preferred shares now yield 7.28% due to recent price declines driven by rising interest rates. The company reported a 13.5% year-over-year increase in net interest income for Q2 2026 and strong coverage of preferred dividends, requiring only $71 million of $1.1 billion half-year net profit to cover payouts. Management expects net interest margins to expand further through 2027, supporting earnings per share growth and maintaining dividend safety. This makes CFG.PR.E an attractive long-term income investment, with risks mainly tied to interest rate fluctuations rather than credit concerns, and potential for capital gains if called at par.

Citizens Financial Group's common stock trades at USD 64.08 on Pluang as of Oct 12, 2026 21:42 WIB, recovering from a 52-week low of USD 48.39 but still below its 52-week high of USD 74.73. The stock's dividend yield of 2.89% contrasts with the much higher 7.28% yield on its Series E preferred shares mentioned in the news. This yield gap highlights the preferred shares' appeal for income-focused investors despite the common stock's recent 0.80% gain in a single day.