Preferred Stock Investing-The Good , The Bad and The In Between 2015 - 2020

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Mr._Graybeard said:
This is such a great thread.
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Glad you enjoy, Graybeard, jump on in! ...Bob I didnt answer other part. I sold my MBFPP (MBFIO) to pay it off. I bought that a little over a month ago at 24.20 on a dumping when delistment announcement occured. It is trading again, appreciated $1.50 plus will snag a divi also. Something had to go as my back cant take bending over to collect 50k worth of aluminum cans in ditches.[emoji1]
 
I was not able to get any SIPRY shares, my bid at $25.60 is still sitting there after 2 days, :(
However, I did buy 10 shares of SLMNP @ $1035.75, so a small consolation prize.
 
Coolius, welcome to the world of chemical company preferreds! Gotta love the psychological comfort of the owner put.
 
What exactly are the SLMNP owner's put rights?

I own some LYB common shares, and might be looking to buy more. Seems quite undervalued to me at this moment.

Thanks!
 
Slow But Steady said:
What exactly are the SLMNP owner's put rights?

I own some LYB common shares, and might be looking to buy more. Seems quite undervalued to me at this moment.

Thanks!
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Slow if you go to LYB SEC filings. Look under their annual report filing and go to page 77. It will state how this Schulman issue can be tendered to LYB at par anytime. The genesis of this issue was a perpetual convertible. Company does not trade anymore so no conversion is possible. So just the perpetual remains. Either buried deep in prospectus from change of ownership or just LYB doing it the put is now installed. I cant link it since I am on phone out and about.
 
I finally got a fill for SIPRY, the Spire 5.9% preferred, that I was chasing for the past 2 days. Filled at $25.71, a little higher than I would like ( was trying at $25.65 with no success ). :(



But the premium over par will be offset by the first 2 dividends, so I will be positioned well at the beginning of next year.


Remains to be seen if this was a poor buy, or not.
 
Well you know for sure it will pay the divie, and that is paramount! Kind of odd your trading platform would not showing the bid and ask, Coolius..All 3 of mine did and that includes lowly TradeKing.
 
Coolius said:
I finally got a fill for SIPRY, the Spire 5.9% preferred, that I was chasing for the past 2 days. Filled at $25.71, a little higher than I would like ( was trying at $25.65 with no success ). :(



But the premium over par will be offset by the first 2 dividends, so I will be positioned well at the beginning of next year.


Remains to be seen if this was a poor buy, or not.
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I also tried to purchase some at 25.60 but it appears this thread has caused a run up on the price...:)
 
capjak said:
I also tried to purchase some at 25.60 but it appears this thread has caused a run up on the price...:)
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Cap, this thing closed yesterday at 25.70 and really didnt open up to us peons until 25.50...I have an on line friend who deals with Morgan Stanley brokerage. He is allowed a piece of any IPO offering at its IPO price of $25...And yes he took advantage of it!
I had the low brow trade of the day... Grey market IPLWO at $83 a post 5 year low...And a puny 4.2% par $100 yield too. Got 100 at $88, $85,and $83. Hoping to get the next stop in the $70s at some point. Its been callable since 1950 so being past call 70 years and below par doesnt worry me about a redemption notice, lol...
Why? Because I wanted too, lol...
 
Mulligan said:
Bob I didnt answer other part. I sold my MBFPP (MBFIO) to pay it off. I bought that a little over a month ago at 24.20 on a dumping when delistment announcement occured. It is trading again, appreciated $1.50 plus will snag a divi also. Something had to go as my back cant take bending over to collect 50k worth of aluminum cans in ditches.[emoji1]
Click to expand...

I figured something had to give. The CG should have been worth treating yourself to a steak dinner. I didn't get in on MBFPP, by the time I looked it was already on it's way up. Keep your hook in the water, save the back.
 
Mulligan said:
Slow if you go to LYB SEC filings. Look under their annual report filing and go to page 77. It will state how this Schulman issue can be tendered to LYB at par anytime. The genesis of this issue was a perpetual convertible. Company does not trade anymore so no conversion is possible. So just the perpetual remains. Either buried deep in prospectus from change of ownership or just LYB doing it the put is now installed. I cant link it since I am on phone out and about.
Click to expand...

Thanks, Mulligan.
 
I looked at it and might have missed it. Is it Qualified Dividends tax wise or regular income?
 
gooddog said:
Mulligan - Contacted Schwab bond desk on this and they show it as a variable preferred. Opinion?
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Gooddog, did the links bring clarification? If not please ask questions and one of us will get it answered! And hopefully correct too! [emoji3]
 
Been lurking on this thread off & on, some knowledgeable people here.

Also been trading mostly mREIT preferreds past couple years. In that time I've learned some are quite risky / volatile like TOO-E and others stable like AGNCN, ANH-C, NLY-F all have been useful for me.

Chemical preferred sound interesting will have to read up on 'em
 
Bought 500 shares of EBGEF for the sock drawer at 19.90 last week. Could not trade it on line. Had to call in to make the trade and they charged me $50 because of it being on the Toronto exchange. At first, I forgot to call the fixed income desk at Fido. Got no help until I did.
 
Hi Ken, glad to see you post. Mreits are out of my comfort zone. More of an indictment on my limited intelligence level than the issues themselves, I am sure!
Free To Canoe, yes each brokerage has their own quirks and do it differently. In fact I have some in Vanguard but they shut down the buying...I have an HSA at TD and like trading there. So last night I set up an account there. Will drive to there office soon and have them transfer everything to TD. Tired of 3 accounts.
 
I got tired of Fido trying to hold my hand & guide me i.e. prevent me from buying floating rate preferred shares so I moved to Schwab. At the time they were giving cash or free trades to jump. the
 
The common stock that the preferred is “juice for” is a down right embarrassment. The preferred though is very safe. I have owned it before and view it as a safe own.
 
Mulligan said:
The common stock that the preferred is “juice for” is a down right embarrassment. The preferred though is very safe. I have owned it before and view it as a safe own.
Click to expand...

Thanks Mully, I have a need to hold some money for a couple of years and it appears to be a safe way to get 4.5% + for the next 2 years…..
 
I think this is probably very basic for most of the posters to this thread but for toe-dippers like me it may be interesting.

So when is it a good idea to follow in Buffett's footsteps and invest in a preferred stock?

"If you have some extra capital, you have a long-time horizon and it's consistent with your investment objective, this may be something that you may want to consider," said Marguerita Cheng, a CFP and the CEO of Blue Ocean Global Wealth.

But don't just wade in before figuring out if it is the right move for you. Here are some advantages and drawbacks of investing in preferred stocks.
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https://www.cnbc.com/2019/05/17/invest-like-warren-buffett-a-guide-on-preferred-stock.html
 
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