USB - U.S. Bancorp Series A Preferred: A Good Source Of Income

2024-06-16 21:43:56 ET

Summary

• U.S. Bancorp's series A preferred shares still offer the most income compared to other options.
• The bank has managed the higher interest rate environment well, with net interest income remaining strong despite some easing.
• While there are risks such as potential loan losses and lower interest rates, U.S. Bancorp's management and liquidity position make it a solid investment choice.

Introduction

U.S. Bancorp ( USB ) is a large regional bank that has not been immune to the industry struggles related to higher interest rates and the retention of deposits. Twice, I have examined the bank’s series A preferred shares ( USB.PR.A ) as a good source of income, with the most recent update coming in January. Despite the run-up in price, the series A preferred shares still provide the most income when compared to the bank’s stock and other preferred shares, and I believe they are still a good buy for investors....

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