TFC - Truist Financial: Don't Let The Net Loss Scare You

2024-01-23 14:43:36 ET

Summary

• Truist Financial reported a substantial net loss in Q4 2024 due to an impairment charge, but the preferred dividends are still well-covered.
• The bank's preferred shares, such as the R-Series and Series O, offer attractive yields and are unlikely to be called.
• Truist Financial's preferred shares are yielding slightly higher than its larger peers, but the company is not significantly cheaper than its banking sector counterparts.

Introduction

The last time I looked at Truist Financial ( TFC ), the stock was trading at approximately 8 times earnings and at a premium of approximately 45% to its book value. I also kept my eyes on the preferred shares and that equity class has performed reasonably well thanks to the lower interest rates on the financial markets....

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