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

[Mulligan]

Quote:

Originally Posted by Coolius CNTHP should be declaring its dividend sometime mid to late December. Go to the link below, you'll see a sister issue, CNLPL, has its January dividend declared already - which provides a further degree of assurance that CNTHP will follow suit. Click on the Sept 24 CL&P dividend declared item. https://www.eversource.com/Content/n...press-releases Congrats on getting the shares. Your price is better than mine - my cost basis is $52.26. I'm confident we'll see the Dec dividend declaration and then its a gravy train ride until redemption - hopefully a very long ride. Update: Noticed that Mulligan has already beaten me to the response. i tell you, that man is DA MAN for such issues !!

Its only because my iPad sits on my lap whenever Im seated watching tv. If I had a laptop instead I wouldn't be on internet so much! Since I last posted already been the Post Office, and got some groceries at Walmart.



Sent from my iPad using Tapatalk

[Golden sunsets]

Thanks Mulligan and Coolius

[Mulligan]

Quote:

Originally Posted by Golden sunsets Thanks Mulligan and Coolius

Bought anything else lately Golden? Here is an example today of why you shouldnt worry about CNTHP price. CNLPL had a quick drop today. I tried to get it 13 cents above current bid, then the ask person jumped me immediately and paid ask price of $52.50. Only one person got the $52.25 trade. And I got neither since I tried to shave off a few cents. Oh well, got tons of CNLPL anyways.
I did buy my smallest yielder ever this week. AILLI which is an older sister of AILLL. Has a 5.4% yield, but was bought $7 under call price and $5 under par price. Just goes to show you how low rates can go as in this "low rate" environment it (AILLI) was issued when rates of long issues were even lower.


Sent from my iPad using Tapatalk

[aja8888]

Quote:

Originally Posted by Mulligan Bought anything else lately Golden? Here is an example today of why you shouldnt worry about CNTHP price. CNLPL had a quick drop today. I tried to get it 13 cents above current bid, then the ask person jumped me immediately and paid ask price of $52.50. Only one person got the $52.25 trade. And I got neither since I tried to shave off a few cents. Oh well, got tons of CNLPL anyways. I did buy my smallest yielder ever this week. AILLI which is an older sister of AILLL. Has a 5.4% yield, but was bought $7 under call price and $5 under par price. Just goes to show you how low rates can go as in this "low rate" environment it (AILLI) was issued when rates of long issues were even lower. Sent from my iPad using Tapatalk

When the Fed increases interest rates in December, it will probably cause a quick drop in preferred prices. Time to load up then.

[Coolius]

Quote:

Originally Posted by aja8888 When the Fed increases interest rates in December, it will probably cause a quick drop in preferred prices. Time to load up then.

Yes, you are correct ....the usual knee jerk response..... I have dry powder waiting for just that event !

[Mulligan]

Quote:

Originally Posted by aja8888 When the Fed increases interest rates in December, it will probably cause a quick drop in preferred prices. Time to load up then.

I suspect in many of them you are correct. Like the liquids and REITs. A lot of crosswinds going on though...Threat of yield hikes, flattening of yield curve, world economy weak, US economy sending contradictory signals. Very strange now. That is why I stick mostly to the ones that are yield trapped from call fears. I wouldn't want to be long on a weak hand.
Yet, the few adjustable rate ones I personally track are so far out of the money on a rate increase helping them, they are not worth looking at for me. Some like bank adjustables may be attractive but my preference is to avoid bank adjustables, though they might very well be good investments.


Sent from my iPad using Tapatalk

[Golden sunsets]

Quote:

Originally Posted by Mulligan Bought anything else lately Golden? Here is an example today of why you shouldnt worry about CNTHP price. CNLPL had a quick drop today. I tried to get it 13 cents above current bid, then the ask person jumped me immediately and paid ask price of $52.50. Only one person got the $52.25 trade. And I got neither since I tried to shave off a few cents. Oh well, got tons of CNLPL anyways. I did buy my smallest yielder ever this week. AILLI which is an older sister of AILLL. Has a 5.4% yield, but was bought $7 under call price and $5 under par price. Just goes to show you how low rates can go as in this "low rate" environment it (AILLI) was issued when rates of long issues were even lower. Sent from my iPad using Tapatalk

I did just put in a limit order for the same issue for my 90 year old Mom's account. I put in the order at 51.65. We'll see what happens. I haven't bought anything else for our own account other than CNTHP and CNLPL a few months ago.

[Coolius]

For those who may be interested, today is exDiv for Wells Fargo preferred Series L, symbol WFC-PL.

At current bid of $1,164, yield is 6.44%. There is no call risk since this is a convertible with no danger of the common hitting convert price anytime soon ( if ever ). Qualified dividends.

The yield is very high for WFC, but this is because the issue was acquired when WFC bought over Wachovia. WFC preferreds usually yield 6% or lower.


Disclosure: this is my largest single holding.

[jim584672]

Quote:

Originally Posted by Coolius For those who may be interested, today is exDiv for Wells Fargo preferred Series L, symbol WFC-PL. At current bid of $1,164, yield is 6.44%. There is no call risk since this is a convertible with no danger of the common hitting convert price anytime soon ( if ever ). Qualified dividends. The yield is very high for WFC, but this is because the issue was acquired when WFC bought over Wachovia. WFC preferreds usually yield 6% or lower. Disclosure: this is my largest single holding.

I scooped up 10 shares of this one a few weeks ago.

[Coolius]

Jim,

I think you'll be pleased with your WFC-PL buy, especially if rate hikes ( after December ) are gradual and strung out over years.

This series is mostly held by institutions, which is both bad & good for us retail types.

Bad because when an institution/HF/ETF dumps big, they drive the price down dramatically. Good because individuals like us can trade small amounts ( 10-20 shares ) for better prices than the posted Bid/Ask.

[Mulligan]

Quote:

Originally Posted by Coolius Jim, I think you'll be pleased with your WFC-PL buy, especially if rate hikes ( after December ) are gradual and strung out over years. This series is mostly held by institutions, which is both bad & good for us retail types. Bad because when an institution/HF/ETF dumps big, they drive the price down dramatically. Good because individuals like us can trade small amounts ( 10-20 shares ) for better prices than the posted Bid/Ask.

Yes, 84% held by institutions... But for income investors this is nothing but a free gift. Latest issued preferred WFC-V has a 5.77% yield vs. the 6.44% yield from L. It is nothing but a freebee as they all rank equally in structure. Cant wait until my HSA funds transfer so I get some shares of L while its in $1160s... That rag tag Vanguard brokerage wont allow trading in it or some others I want to buy... They are a poor outfit for trading preferreds.
Speaking of exD snagged up a couple hundred shares of KTBA at $27.38 yielding about 6.4%. Investment grade "baby bond" by ATT. Not callable until almost the 22nd century. Way past my expiration date.


Sent from my iPad using Tapatalk

[Coolius]

Quote:

Originally Posted by Golden sunsets I submitted a standing order for CNTHP for 200 @ 52.00 that was filled yesterday. But now I see that the last sales were at 51.65 Oh well. Now I just need to sweat it out until the next X dividend date right, to make sure that it isn't called at 51.44? Must be sometime in January - right? Yield 6.30%

Golden Sunsets, your CNTHP buy was very timely. And same goes for the others who picked up a few recently.

We should be getting a dividend announcement shortly, which will put you solidly in the + side even if the stock is called.

There is a current bid for 200 shares @ $53, so that bidder must also be confident of no call risk. Good to see that, eh ?

[Mulligan]

Quote:

Originally Posted by Coolius Golden Sunsets, your CNTHP buy was very timely. And same goes for the others who picked up a few recently. We should be getting a dividend announcement shortly, which will put you solidly in the + side even if the stock is called. There is a current bid for 200 shares @ $53, so that bidder must also be confident of no call risk. Good to see that, eh ?

I have feasted at that CNLPL/CNTHP buffet far too much already though it is always a safe, tasty meal. So I am eagerly waiting for my HSA funds to be transferred so I can reestablish my WFC-L position while its near $1170. Would like to spread the rest in a 12 year termination one and an adjustable issue though they will take some work just to sneak a few hundred shares of each into the fold.


Sent from my iPad using Tapatalk

[Golden sunsets]

Quote:

Originally Posted by Mulligan I have feasted at that CNLPL/CNTHP buffet far too much already though it is always a safe, tasty meal. So I am eagerly waiting for my HSA funds to be transferred so I can reestablish my WFC-L position while its near $1170. Would like to spread the rest in a 12 year termination one and an adjustable issue though they will take some work just to sneak a few hundred shares of each into the fold. Sent from my iPad using Tapatalk

Mulligan; what do you mean by a 12 year termination? And why the distinction of 12 years?

[Golden sunsets]

Quote:

Originally Posted by Coolius Golden Sunsets, your CNTHP buy was very timely. And same goes for the others who picked up a few recently. We should be getting a dividend announcement shortly, which will put you solidly in the + side even if the stock is called. There is a current bid for 200 shares @ $53, so that bidder must also be confident of no call risk. Good to see that, eh ?

Looking forward to the declaration.

[Mulligan]

Quote:

Originally Posted by Golden sunsets Mulligan; what do you mean by a 12 year termination? And why the distinction of 12 years?

This preferred is actually a baby bond trust preferred. It is not a perpetual issue like a CNTHP. It was issued in 2001 and matures in 2028 and is not callable. Buying these isn't material for you, since your portfolio is more diversified. But I pretty much have all my assets in preferreds and trust preferreds as I am a total income investor. But if I was a more traditional investor and was allocating 10% of my portfolio for preferreds, I would just go long and not worry about.


Sent from my iPad using Tapatalk

[jim584672]

Quote:

Originally Posted by Mulligan Yes, 84% held by institutions... But for income investors this is nothing but a free gift. Latest issued preferred WFC-V has a 5.77% yield vs. the 6.44% yield from L. It is nothing but a freebee as they all rank equally in structure. Cant wait until my HSA funds transfer so I get some shares of L while its in $1160s... That rag tag Vanguard brokerage wont allow trading in it or some others I want to buy... They are a poor outfit for trading preferreds. Speaking of exD snagged up a couple hundred shares of KTBA at $27.38 yielding about 6.4%. Investment grade "baby bond" by ATT. Not callable until almost the 22nd century. Way past my expiration date. Sent from my iPad using Tapatalk

Vanguard's web platform choked on my WFC-L order. Had to call, they transferred me to the bond desk. By that time the price moved and I told them not to enter the order. grrrr...

[Mulligan]

Quote:

Originally Posted by jim584672 Vanguard's web platform choked on my WFC-L order. Had to call, they transferred me to the bond desk. By that time the price moved and I told them not to enter the order. grrrr...

There is no choking Jim, it just plain SUCKS for preferred investors. I cant tell you how many issues I have tried to buy there without having to call desk. Thankfully my HSA accounts are competent and can handle the orders. WFC-L has never worked online through Vanguard. And I don't want to have to listen to an adolescent having to tell me a purchase is "minus 30%, 30 day YTC". I then have to tell him I know what I am doing and it isn't -30%. BTW- that minus 30% issue he was trying to talk me out of is up 10% for the year including dividends.


Sent from my iPad using Tapatalk

[Slow But Steady]

Quote:

Originally Posted by jim584672 Vanguard's web platform choked on my WFC-L order. Had to call, they transferred me to the bond desk. By that time the price moved and I told them not to enter the order. grrrr...

The Ask price is back down to 1166. Go for it!

[Mulligan]

Quote:

Originally Posted by Slow But Steady The Ask price is back down to 1166. Go for it!

The liquidity is such you may at times be chasing a ghost and looking back may not get what was traded, as your present bid will always be put at the back of the bus.The best way is to set the bid at the price you are comfortable buying at, and let it come to you in time.


Sent from my iPad using Tapatalk