Citizens Financial: A Comparison Among The Company's Outstanding Preferred Shares (CFG) | Seeking Alpha
Citizens Financial Group has 3 outstanding preferred shares: CFG. PR. E and CFG. PR. H are fixed-rate preferred shares, while CFG. PR. I is a fixed-rate reset preferred share. Read more here.
HomeDividends AnalysisDividend IdeasFinancialsSummaryCitizens Financial Group has three series of outstanding preferred shares: CFG. PR. E and CFG. PR. H are fixed-rate preferred shares, while CFG. PR. I is a fixed-rate reset preferred share. Preferred dividend obligations are well covered, with net income providing over 15x coverage, while preferred equity accounts for less than 10% of Citizens Financial Group's total equity capital. The yield divergence between CFG's preferred shares and the common shares is much more pronounced, enhancing their appeal for income-focused investors while increasing the opportunity cost of allocating to equity. CFG. PR. E possesses materially better economic characteristics despite offering a slightly lower yield than its fixed-rate peer, CFG. PR. H. Although CFG. PR. I has a lower duration, a lower current yield, and a higher call risk relative to CFG. PR. E more than offset that duration advantage. Max Zolotukhin/iStock via Getty ImagesCitizens Financial Group (CFG) currently has three series of outstanding preference shares. Of these, Series E and Series H are fixed-rate securities, thereby possessing considerable sensitivity to interest rates, or duration exposure, while Series I is a fixed-rate reset security. 373 FollowersAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Readers are advised to fact-check thoroughly before committing any capital to this idea; this reflects the personal views of the author and should not be pursued as formal financial or investment advice in any manner. While every effort has been made to ensure accuracy, errors may exist in the data and financial projections presented. The author is not responsible for any financial gains or losses incurred from investments made based on this content. Seeking Alpha's Disclosure:Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.