KeyCorp: Aggressive Share Buyback Boosts EPS, Preferred Shares Are Interesting

The Investment Doctor Investing Group Leader Follow Summary KeyCorp reported robust Q2 results, with net interest income up 10% and preferred dividend coverage ratio improving to 7%. KEY’s aggressive share buyback program, exceeding $700M in H1, reduced share count and is expected to boost per-share performance. The Series H preferred (KEY.PR.L) offers a 6.2% yield but trades at a premium, reflecting market skepticism about a 2027 call. I assign a speculative buy to Series H, favoring purchases near or below $25 par. Common shares also look increasingly attractive. Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas. Learn More » Getty Images Introduction KeyCorp ( KEY ) is an Ohio-based holding company, owning KeyBank, which is active in about 15 states with almost 1,000 branches. The bank recently repurchased a tremendous amount of its own shares, and this will boost the per-share performance going This article was written by The Investment Doctor 23.95K Followers Follow The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.