OK, so I bought some Friday -- the preferred stocks of Royal Bank of Scotland, Deutsche Bank, and ING groep. THey have current yields of between 7.8 and 8%, and yields to call of about 12%. They all qualify for the 15% dividend taax rate.
Now i'm second guessing myself. I suppose none of these will go bankrupt, which would be the only reason for them to suspend payment. And the yields are tempting. But I've already taken a bath on regular domestic bank stocks this year, and wonder if i've set myself up for another one.....
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The next few months will indeed be interesting. I suspect there will be better bargains yet in this asset class, and intend to try and keep some powder dry....I always tend to buy too early on the way down.
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