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U.S. Bancorp preferred shares offer near 7% floating yields with strong credit support and discounts to par.

11 Nov 2026, 14:24 WIB
Seeking Alpha
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Bullish
U.S. Bancorp preferred shares offer near 7% floating yields with strong credit support and discounts to par.

U.S. Bancorp's Series A and Series B preferred shares provide attractive floating-rate yields close to 7%, appealing to income-focused investors amid uncertain interest rates. These preferreds trade at significant discounts to par, reducing call risk and enhancing yield potential. Supported by a robust CET1 capital ratio of about 10.8% and dividend coverage exceeding 20 times earnings, these securities offer strong credit backing. Both USB.PR.A and USB.PR.H are rated as Buy for their yield, floating-rate protection, and credit strength.

U.S. Bancorp shares trade at USD 60.61 on Pluang as of Nov 11, 2026 19:12 WIB, down slightly by 0.23% in one day. The stock's dividend yield stands at 3.56%, notably lower than the nearly 7% floating-rate yields offered by its preferred shares highlighted in the news. With a market cap of $94.66 billion, U.S. Bancorp remains a significant player in the financial sector, attracting investors focused on income and credit strength.

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