KeyCorp’s 8.2 Percent Yield on Preferred Shares Might Change the Case for Investing in KEY

• KeyCorp recently announced that its Series I preferred shares will float at an 8.2% rate, offering one of the most attractive yield potentials available based on current rates, while reporting improved net interest income for five consecutive quarters.
• This shift reflects effective interest expense management and resuming loan growth, alongside a conservative loan-to-deposit ratio supporting stable external financing needs.
• We’ll consider how the heightened yield on KeyCorp’s preferred shares may reinforce confidence in the bank’s fundamental momentum and income strategy.

We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

KeyCorp Investment Narrative Recap

To own shares in KeyCorp, investors need to believe in the bank's ability to maintain profitability and grow its net interest income despite challenges in asset quality and competitive pressures. The announcement of an 8.2% floater yield on Series I preferred shares strengthens the short-term appeal of its income strategy, although it does not materially change the fact that rising charge-offs and profitability pressures remain the biggest risks right now.

The most relevant recent announcement is KeyCorp’s consistent declaration of ordinary and preferred dividends, most recently on July 15, 2025. These announcements reinforce management’s focus on sustaining regular income for investors, tying directly into the current catalyst of net interest income improvement supported by disciplined deposit and loan growth.

In contrast, investors should be aware that while income opportunities are rising, asset quality issues, such as the recently reported charge-offs, could ...

Read the full narrative on KeyCorp (it's free!)

KeyCorp's narrative projects $7.7 billion in revenue and $2.4 billion in earnings by 2027. This requires 10.5% annual revenue growth and a $1.68 billion increase in earnings from the current $716.0 million.

Uncover how KeyCorp's forecasts yield a $21.17 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Four individual investor fair value estimates in the Simply Wall St Community for KeyCorp range from US$18.00 to US$28.15 per share. You may value the recent net interest income growth and rising dividend yields, but the risk of escalating charge-offs remains an ongoing concern for the company’s earnings outlook.

Explore 4 other fair value estimates on KeyCorp - why the stock might be worth as much as 46% more than the current price!

Build Your Own KeyCorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your KeyCorp research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free KeyCorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KeyCorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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