Originally Posted by jebmke
You get what you pay for. Right now, real yields on anything stable are < 1%. I assume zero because it makes it easy to calculate my RMD when I turn 70.5. The difference between zero and a reasonable estimate isn't worth the arithmetic.
Mostly true but when you dig deep into illiquid preferreds you can find anomalies that return real positive yields in a safe manner. Take for example my favorite one that I have accumulated thousands of shares through patience, an Ameren Illinois (AILLL) preferred issue..
Jan. 4, 2005, Inflation 3%, 10 year note 4.22%. Stock price $24.40, yield 6.78%.... 3.78% above inflation rate
Jan. 4, 2016, Inflation rate 1.4%, 10 year note 2.09%, Stock price $26.20, yield 6.32%..... Yielding 4.92% above inflation.
Steady eddy and always cashes like clockwork every 3 months!
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