Athene Holdings: A Steady Hand in a Rising Rate Environment – Why These Preferred Stocks Are a Must-Hold

In a world of soaring interest rates, investors are scrambling to lock in income streams that can weather the storm. Athene Holding Ltd. (NYSE: ATH), the $380 billion retirement services giant, has just reinforced its position as a pillar of stability with its recent preferred stock dividend declarations. With yields reaching as high as 7.75% and a fortress-like balance sheet, Athene's preferred shares offer a compelling mix of income, safety, and strategic advantage in today's volatile market. Let's dissect why these non-cumulative preferreds are primed to outperform—and why you should act now.

The Preferred Dividend Playbook: High Yields, Steady Hands

Athene's recent announcements highlight five preferred stock series (A through E), each with distinct features designed to appeal to income seekers. Here's the breakdown:

1. Series E (ATHPrE): The High-Yield Champion
2. Dividend Rate: 7.75% fixed-reset
3. Quarterly Dividend: $0.484375 per depositary share

4. Why It Shines: This is the highest-yielding series, offering a guaranteed payout in an era where traditional bonds are struggling.

5. Series A (ATHPrA): Fixed-to-Floating Flexibility

6. Dividend Rate: 6.35% fixed-to-floating
7. Quarterly Dividend: $0.396875 per depositary share

8. Why It Matters: While the reset date remains undisclosed, its hybrid structure could provide downside protection if rates stabilize.

9. Series C (ATHPrC): The Steady 6.375% Anchor

10. Dividend Rate: 6.375% fixed-rate reset
11. Quarterly Dividend: $0.3984375 per depositary share
12. Why It Works: A solid middle-ground yield with potential to reset higher if market rates continue their climb.

Non-Cumulative Risk? Not When Backed by $380 Billion in Assets

Critics will point to the non-cumulative terms, which mean missed dividends aren't owed. But here's why that's a red herring:
- Consistent Track Record: Athene has paid every declared dividend on schedule since its preferred stock launches, demonstrating financial discipline.
- Asset Powerhouse: With $380 billion in total assets (as of March 2025), Athene has the liquidity to prioritize shareholder payouts—even in tough environments.

In a rising rate world, Athene's fixed-rate preferreds become a counterbalance to floating-rate exposure. While floating-rate securities might lag if rates peak, Athene's locked-in yields like 7.75% (Series E) act as a shield against market volatility.

The Rising Rate Edge: Why Preferreds Outperform Bonds

Corporate bonds are losing their luster as rates climb. But preferred stocks like Athene's thrive because:
1. Higher Yield Floors: Athene's preferreds yield 2-3x more than the 10-year Treasury (currently ~3.8%).
2. Subordination Advantage: As junior to debt but senior to common stock, they offer a risk-return balance unmatched by pure equity.
3. Inflation Hedge: Fixed-rate payouts act as a “real return” buffer if inflation remains sticky.

Action Plan: Buy Now—Before Rates Rise Further

The writing is on the wall: the Fed's pause doesn't mean rates will drop soon. For income investors, Athene's preferreds are a buy-and-hold masterpiece:
- Focus on Series E: The 7.75% yield is a rarity in this environment—act fast before spreads tighten.
- Layer in Series A/C: For diversification, use these to balance potential rate resets with Athene's operational resilience.
- Monitor Liquidity: With NYSE listings and consistent trading volumes, these shares are liquid enough for active traders.

Final Word: A Dividend Machine Built for Turbulence

Athene's preferred stocks aren't just about income—they're about security. With a fortress balance sheet, disciplined management, and yields that outpace the market, these securities are a no-brainer for portfolios needing ballast.

The clock is ticking. Lock in these rates before they vanish.

DISCLAIMER: Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.