8% Yield, -7% Discount On Community Banks And Alternative Capital Securities

This security gives retail investors exposure to a diverse group of US Community banks across 30 states. It also has exposure to a high yield niche market - Alternative Capital Securities, which are issued by the world's largest money center banks. It yields 8%. Management just declared the regular $0.38 quarterly dividend and a $0.05 special dividend. They go ex-dividend on 12/18/20. It's selling at a -6.76% discount to NAV.

StoneCastle Financial Corp. (BANX) has been one of our core holdings since the inception of our Hidden Dividend Stocks Plus service. Like many of the investment vehicles you'll find in our articles, BANX has an attractive yield but flies under the radar. It's a CEF covering a unique niche - investing primarily in US community banks, long considered the safest sub-sector of the US banking system, (since 1934, the average annual community bank failure rate was about 0.38%).

Source: Seeking Alpha

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