Preferred Stocks Called Looking for Replacements

[Henry Lili]

In January a longtime 7.25% PS holding in Wachovia (absorbed by Wells Fargo) was called and this month another 7.375% in Pulte Group will be called. Both good news on the capital appreciation side given I bought back in the crash days at below par thus getting even more yield than the coupon. Both were great rides. That said, I'm on the hunt for good yielding replacements and thought I'd ask others here what they are in on the preferred front or other income producing securities

 

[brewer12345]

I think you are unlikely to replace those yields with anything that is not a foolhardy risk. You could trawl the closed end fund world, but beware funds with leverage.

 

[Coolius]

Take a look at Cenex Harvest Inc. ( CHS ). They are one of the biggest Agri co-ops in the country, and currently have 2 Preferred Series outstanding, CHSCP and CHSCO.

Present yield about 7%. Not callable until 2023. Qualified Dividends - just like your bank Preferred.

The company has a strong balance sheet, and has not missed any dividend payment, even during the depths of the 2008-2009 crises.

They will be coming out with a new issue, CHSCN, soon. This is not quite as attractive because it will be a fixed-to-floating issue.

CHSCO is the largest holding in my portfolio.

As always do your own DD before you make any decision.

 

[KiraC]

Check out OpE, a monthly dividend preferred

 

[aja8888]

Take a look at Cenex Harvest Inc. ( CHS ). They are one of the biggest Agri co-ops in the country, and currently have 2 Preferred Series outstanding, CHSCP and CHSCO.

Present yield about 7%. Not callable until 2023. Qualified Dividends - just like your bank Preferred.

The company has a strong balance sheet, and has not missed any dividend payment, even during the depths of the 2008-2009 crises.

They will be coming out with a new issue, CHSCN, soon. This is not quite as attractive because it will be a fixed-to-floating issue.

CHSCO is the largest holding in my portfolio.

As always do your own DD before you make any decision.

What's the reason for the 5% drop in CHSCO in the last two weeks? I looked for news and couldn't find anything.

 

[KiraC]

What's the reason for the 5% drop in CHSCO in the last two weeks? I looked for news and couldn't find anything.

Earnings miss on 2/28/2014.

Chico's Falls on Q4 Earnings Miss - Analyst Blog
9:50a ET February 28, 2014 (Zacks.com) Print Shares of Fort Myers, Florida-based specialty retailer, Chico's FAS, Inc. (CHS) fell 8.5% yesterday after the company posted disappointing fourth-quarter and fiscal 2013 results. The company’s adjusted earnings per share of 4 cents and 85 cents for the fourth quarter and fiscal 2013 respectively fell 80% and 22% from the year-ago comparable periods.
Moreover, the company’s bottom-line results for the fourth quarter and fiscal 2013 came below the Zacks Consensus Estimate of 16 cents and 97 cents per share, respectively. The year-over-year decline in bottom results was mainly due to lower sales and higher operating expenses.
Adjusted earnings for fourth-quarter fiscal 2013 did not include tax charges related to non-cash goodwill impairment charge of Boston Proper while for fourth-quarter fiscal 2012, non-recurring acquisition and integration costs were excluded.
After incorporating these charges, the company reported break-even earnings for the fourth quarter of fiscal 2013 against 19 cents per share reported in the fourth quarter of fiscal 2012. For fiscal 2013, on a reported basis, the company posted earnings per share of 41 cents versus $1.08 in fiscal 2012.
Net sales decreased 6.4% year over year to $610.2 million in the quarter and lagged the Zacks Consensus Estimate of $655.0 million. The top line in the quarter was negatively impacted by cautious consumer spending behavior and unfavorable weather conditions.
Net sales during fiscal 2013 improved marginally to $2,586.0 million from $2,581.1 million in fiscal 2012. However, fiscal 2013 sales remain below the Zacks Consensus Estimate of $2,630.0 million.

 

[aja8888]

Earnings miss on 2/28/2014.

Chico's Falls on Q4 Earnings Miss - Analyst Blog
9:50a ET February 28, 2014 (Zacks.com) Print Shares of Fort Myers, Florida-based specialty retailer, Chico's FAS, Inc. (CHS) fell 8.5% yesterday after the company posted disappointing fourth-quarter and fiscal 2013 results. The company’s adjusted earnings per share of 4 cents and 85 cents for the fourth quarter and fiscal 2013 respectively fell 80% and 22% from the year-ago comparable periods.
Moreover, the company’s bottom-line results for the fourth quarter and fiscal 2013 came below the Zacks Consensus Estimate of 16 cents and 97 cents per share, respectively. The year-over-year decline in bottom results was mainly due to lower sales and higher operating expenses.
Adjusted earnings for fourth-quarter fiscal 2013 did not include tax charges related to non-cash goodwill impairment charge of Boston Proper while for fourth-quarter fiscal 2012, non-recurring acquisition and integration costs were excluded.
After incorporating these charges, the company reported break-even earnings for the fourth quarter of fiscal 2013 against 19 cents per share reported in the fourth quarter of fiscal 2012. For fiscal 2013, on a reported basis, the company posted earnings per share of 41 cents versus $1.08 in fiscal 2012.
Net sales decreased 6.4% year over year to $610.2 million in the quarter and lagged the Zacks Consensus Estimate of $655.0 million. The top line in the quarter was negatively impacted by cautious consumer spending behavior and unfavorable weather conditions.
Net sales during fiscal 2013 improved marginally to $2,586.0 million from $2,581.1 million in fiscal 2012. However, fiscal 2013 sales remain below the Zacks Consensus Estimate of $2,630.0 million.

Wrong company - looking for preferred stock CHSCO (of CHS, Inc, a farm cooperative), but thanks anyway.

http://www.chsinc.com/

 

[Coolius]

aja8888,

The drop was due to the shelf registration of the upcoming CHSCN series.

Same thing happened with CHSCP the first series, when CHSCO was announced. But the company decided to extend the life of CHSCP to 2023, same as CHSCO, even though the call date was well past.

Many analysts explained that CHSCP is held mostly by the farmer members of the co-op, and they are strong holders enjoying the dividends as well as special distributions from time to time. CHS recently paid out millions in a special distribution to their members.

CHSCO is more widely held ( retail investors and funds ) and thus may be a little more volatile.

But IMO both represent a good yield, a strong company in a stable industry ( agriculture ) and a safe income stream until 2023. Their balance sheet & income statement look good, you can check it out on their website.

I was all set to scoop up CHSCN upon trading on the OTC, but the fixed-to-floating rate gives me pause. I might add to my holdings of CHSCO instead as I really prefer a fixed income pipeline. But that's my feeling.

 

[aja8888]

aja8888,

The drop was due to the shelf registration of the upcoming CHSCN series.

Same thing happened with CHSCP the first series, when CHSCO was announced. But the company decided to extend the life of CHSCP to 2023, same as CHSCO, even though the call date was well past.

Many analysts explained that CHSCP is held mostly by the farmer members of the co-op, and they are strong holders enjoying the dividends as well as special distributions from time to time. CHS recently paid out millions in a special distribution to their members.

CHSCO is more widely held ( retail investors and funds ) and thus may be a little more volatile.

But IMO both represent a good yield, a strong company in a stable industry ( agriculture ) and a safe income stream until 2023. Their balance sheet & income statement look good, you can check it out on their website.

I was all set to scoop up CHSCN upon trading on the OTC, but the fixed-to-floating rate gives me pause. I might add to my holdings of CHSCO instead as I really prefer a fixed income pipeline. But that's my feeling.

Thanks, I figured it had an effect on it from the new series registration. I need to look at this further as it looks interesting, especially for the cash paid out.

 

[Henry Lili]

Thanks

Thanks folks. I'll look into those.