This preferred stock is backed by a global financial company.
Stifel Financial Corp. (SF-PC)
From Income Securities Investor
Stifel Financial Corp.; 6.125% Fixed Rate, Non-Cumulative Perpetual; Par $25.00; Annual Cash Dividend $1.53125; Current Indicated Yield 5.45%; Call Date 06/15/25 at $25.00; Yield to
Call 3.15%; Pay Cycle 3m; Ratings, Moody’s NR, S&P BB-; CUSIP 860630870
Stifel Financial Corp (SF) is a St. Louis-based, global wealth management and investment banking company. Its diversified financial services are offered through its primary broker-dealer subsidiary, Stifel, Nicolaus & Company, a full-service investment banking and brokerage institution. The company provides its financial services across the retail sector, as well as to institutions and corporations.
This 6.125% preferred issue may be redeemed on 06/15/25, or anytime thereafter, at par plus any declared but unpaid dividends.
SF reported 3Q 2020 adjusted net income of $120.5 million or $1.59 per share, exceeding analysts’ $1.33 estimates. Third quarter net revenue rose 7.5% to $883.3 million, reflecting increased client activity. Bottom line results rebounded from early 2020 on the back of much improved market conditions, leading to considerably higher asset prices. We expect operating revenue and net results to maintain traction in 2021, as the economy continues its steady improvement.
Dividends on this preferred stock are qualified and taxed at the 15%-20% rate. This investment is suitable for medium-risk, taxable portfolios. Buy up to $28.25 for a 5.42% current yield and a 3.01% yield to call.
Martin Fridson, CFA, Income Securities Investor, isinewsletter.com, 800-472-2680, January 2021