Dividends4Life: A Safe 7.5% Yield In A U.S. Niche Industry At A Perfect Time In The Credit Cycle

The yield is 7.5%, on a unique company that lends $ to a solid US community-based niche industry. Its customer base has been the most stable part of the financial industry. It's currently 9% below analysts' lowest price targets and is also selling below book value. You've probably never heard of it, but it deserves a strong look...

StoneCastle Financial Corp. (BANX) has a very unique business model. It lends money to community banks throughout the US, through preferred equity, subordinated debt and common equity investments and gives income investors a secure, high yield exposure to them. These banks may be much smaller than the money center banks, but they make up for it by having a strong market share in their towns, which can run up to 70% in some cases.

Source: Seeking Alpha

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