"While I continue to avoid bank stocks and bank ETFs , I very much continue to recommend that you buy and own plenty of nicely high-yielding bank preferreds and bank minibonds for your retirement investing," says Neil George.
In his income-focused Stocks that Pay You, the advisors reviews his favorites among these lesser-known investment vehicles.
"Why invest in banks at all? Because -- as they continue to clean up and bolster their balance sheets -- banks are getting even better credit risks, which means that you'll be even more likely to get paid your high-yield dividends and interest payments.
"So, Regions Financial common should be avoided. But do buy the Regions Financial 8.875% preferred (NYSE (NYSE: RF-Z). The common got hit -- but the preferred keeps humming along. Still trading right around 21 bucks -- it's a nice yielder paying you over 10%.
"Wells Fargo's common isn't what I'd want to own - but the Wells Fargo 7% preferred (NYSE: WSF) is a buy. Trading much like the Regions -- the Wells Fargo preferred is now around 23 and change, resulting in a still nice quarterly pay day for you amounting to a yield of near 7.5%.
"US Bank might be getting a break from the market with its common -- but while I do still have some lingering shares from a buyout -- I'm now looking at the preferred from this bank.
"Look at the US Bank 5.75% preferred (NYSE: USB-E) trading just a tick or so above 20 -- it's another good stock that pays you with a yield of around 7.1%."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
Closing Bell: The recession is still over, still... do you feel it?
