Why It Ranks
Yield from the most dominant investment bank in the world. Goldman's diversification into asset management and consumer banking has reduced earnings volatility while maintaining the franchise premium.
Full Analysis
Goldman Sachs Series D preferred offers yield from the most prestigious investment bank in the world. Goldman's franchise in M&A advisory, capital markets, trading, and asset management generates diverse revenue streams that support strong capital ratios and reliable preferred dividend payments.
Goldman Sachs under CEO David Solomon has diversified beyond traditional investment banking into consumer banking (Marcus), transaction banking, and asset management. This diversification reduces the earnings volatility that historically made investment banks riskier credits than commercial banks.
GS-PD offers a yield premium to the commercial bank preferreds (JPM, BAC, WFC) reflecting Goldman's more volatile earnings profile and greater dependence on capital markets activity. For investors who view Goldman Sachs as a franchise that will continue to dominate Wall Street for decades, this premium represents compensation for manageable risk.
Key Details
Income Investing
Preferred stocks are the foundation of income portfolios — offering yields above bonds, priority over common stock, and the stability of a par value anchor. This is not speculation. This is the capital structure working as designed.
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