Insurer Sees Strong Demand for Preferred Stock With Juicy 9% Yield

Income-oriented investors got a gift when insurer


Lincoln Financial Group


offered $1 billion of preferred stock this week, including a deal with a 9% annual dividend rate that is accessible to retail buyers.

Lincoln Financial Group (Ticker LNC) sold $500 million of the 9% preferred—20 million shares priced at $25—that will be listed on the NYSE. It also issued $500 million of preferred with a 9.25% rate that was sold in the mainly institutional market at $1,000 a share.