2024-01-29 01:21:44 ET
Summary
- U.S. Bancorp has been affected by higher interest rates, but net interest income remains higher than pre-pandemic levels.
- The bank is facing challenges in attracting deposits and loan demand, but has a strong cash buffer and low loan to deposit ratio.
- U.S. Bancorp's Series A preferred shares offer an 8% dividend yield and selling put options on its common shares can provide attractive premiums.
U.S. Bancorp ( USB ) is a large regional banking company that has seen its share of struggles from the regional banking crisis. Back in October, I examined the 9% yielding Series A preferred shares , highlighting the great income opportunity they presented. While the preferred shares have rallied, the 8% yield is still higher than the bank’s other preferred offerings and I believe it is still an attractive income-producing investment. Additionally, investors can explore a second income-producing option by selling put options against the bank’s common shares....
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U.S. Bancorp: Two Ways To Earn Good Income