ING Direct’s Orange CD interest rate for one year now stands @ 2.50%. If someone saves money at these rates, they would actually loose money due to inflation. It is like lending money to ING for free and then getting penalized for it. How awful is that?.
Due to the current market “fluctuations” there are many hi-quality stocks that offer yields that are far better than the above puny 2.5%. One would be better off investing their in these hi-quality stocks and getting the great yield as opposed to keeping money in a CD. My friend Jay @ ConfusedCapitalist
had written an article about three US banks that have high yields back in January with one of them having an yield of 7.1%.You can read the full the article titled “7.1? Are you kidding me?” here.
In this post, I will mention two British bank ADR stocks that have yields of 10.98% and 13.87% respectively.
1. Bank: Llyods Bank plc
Ticker – LYG
Dividend yield – 10.98% (based on Friday’s closing price)
Friday closing share price – $35.46
2. Bank: Royal Bank of Scotland plc
Ticker – RBS
Dividend yield – 13.87% (based on Friday’s closing price)
Friday closing share price – $6.65
Both these banks are long-term value stocks at current share prices. With yields of above 10%, these stocks may not continue to hold the current low share prices.While it is possible that the share prices may go down more in the next three months, by the end of the year bank stocks may come roaring back. Anyone with a long-term investment horizon or looking for solid foreign ADR stocks with high dividend yields these two stocks are great picks.
British Bank ADRS !!!