Preferred Stock Investing-The Good , The Bad and The In Between 2021

[Winemaker]

And another, NNN-PF, National Retail Properties 5.2% called 10/15/21.

 

[bobandsherry]

Not a recommendation, but observation for those who want to do their due diligence. HCDIP drop of $1.75 (7.4%), trading at $22.20. Goes ExD 9/29 (div declared), 8% coupon rate (9% yield), QDI, pays monthly. Company filed secondary offering to sell another million shares of this issue to fund their development which seems to be reason for drop in price.

This has a premium paid in cases of change of control in the next couple of years:

Change of Control. If we undergo a “Change of Control” (as defined below) that was pre-approved by the Company’s Board of Directors, holders of Series A Preferred Shares have the option to (i) demand that we redeem the Series A Preferred Shares at (a) $26.63 per Series A Preferred Share from the date of issuance until and not including June 9, 2022, (b) $25.81 per Series A Preferred Share on or after June 9, 2022 until and not including June 9, 2023, and (c) $25.00 on or after June 9, 2023, in each case plus the amount of any accumulated and unpaid dividends thereon to but not including the date of redemption (whether or not such dividends shall have been declared); (ii) continue to hold the Series A Preferred Shares; or (iii) convert some or all of the Series A Preferred Shares together with accrued but unpaid dividends.

 

[brokrken]

How do you guys feel about taking a chance on SCHW-D. It just went past call on 6/1. You can get it now for about a 1 divy premium, so your call risk is covered on 12/1. If they happen to hang on to it, you've got a current yield of about 5.85%

 

[pb4uski]

Watford Intends to De-List and De-Register its Cumulative Redeemable Preference Shares (Nasdaq: WTREP) Following Merger

https://www.globenewswire.com/news-...nce-Shares-Nasdaq-WTREP-Following-Merger.html

Just noticed this week that Quicken values WTREP at zero...same with Schwab where I hold it. It also no longer comes up on MarketWatch, but does on Yahoo Finance with a current price of $25.09... but that is an old July 12th price.

Tempted to sell it but I'll hold out a little while and hope that they call it.

 

[bobandsherry]

Just noticed this week that Quicken values WTREP at zero...same with Schwab where I hold it. Also, no longer comes up on MarketWatch, but does on Yahoo Finance with a current price of $25.09... but that is an old July 12th price.

Tempted to sell it but I'll hold out a little while and hope that they call it.

I unloaded mine before it was delisted, didn't want to deal with it. And there were other options to get a decent yield. As this point I'd just hold and collect the dividend vs trying to sell and have to call in and pay any fees. Could be it gets called soon and takes care of itself for you.

 

[Mulligan]

I unloaded mine before it was delisted, didn't want to deal with it. And there were other options to get a decent yield. As this point I'd just hold and collect the dividend vs trying to sell and have to call in and pay any fees. Could be it gets called soon and takes care of itself for you.

Guys, WTREP is untradeable now. No ticker symbol. The pricing on brokerage account may go to zero due to stale pricing. Im fine holding my approx. 2k shares. I dont know of many issues with near IG credit with a 7% floor and higher if rates go up. I would be surprised if it makes it to the new year though without being redeemed.
Side note, if you are looking for extra safe and 5% for a year have you considered IBONDs? 10k max each year per person but you could get 5k more through a tax refund. IBonds track inflation. You would get 3.5% annualized for 6 months and about 6.5% annualized falling 6 months if bought before end of Oct.

 

[Winemaker]

For those of you wishing to pick up some SLMNP, it's down to $1021 today.

 

[bobandsherry]

For those of you wishing to pick up some SLMNP, it's down to $1021 today.

Unfortunately ETrade won't let me buy, "Opening transactions in Pink No Information, Grey Market and Expert Market securities are not permitted due to the inherent risk associated with these products." SMH

 

[yakers]

Placed an order, see what will happen, have some shares bought @$1050, I would have preferred that it went up but maybe time to buy a bit more.

 

[bobandsherry]

For those of you wishing to pick up some SLMNP, it's down to $1021 today.

Now trading $1015, low for day is $1,011 (52 week low as well).

 

[brokrken]

For those of you wishing to pick up some SLMNP, it's down to $1021 today.

Thanks, was able to get some at $1020

 

[Mulligan]

Thanks, was able to get some at $1020

OTC (via new SEC regs) put the clamp on SLMNP. It just got added to “the no trade list”. As the retail brokers catch this, few people will be able to buy, though may allow to sell. One runs the risk of being trapped in an untradeable issue or sell at a fleece pricing.
I sold mine out early today after someone posted on another site it got put on list. I am taking 2 issues to the dark side, but dont want anymore of these types. Thanks SEC!

 

[Sunset]

^^^^^^ Thanks for the heads up. I don't want to be trapped either.

 

[Mulligan]

^^^^^^ Thanks for the heads up. I don't want to be trapped either.

This ruling is punishing a lot of quality issues. The SEC is catching some dolphins in the fishing net and doesnt care. I was on an airplane and couldnt do anything about it last week, but 7000 shares of an old ancient Ocean Spray preferred were being dump at $14, which was a 7.14% QDI yield. It is BB rated and never missed a payment in 70 years. Now I would have taken that one to the dark side at $14, but I couldnt call it in.
Another disconcerting thing about this new ruling is it will likely make your value of the shares eventually show up in your as an amount worth $0.00.
As they wont have bid or ask spreads posted, and with no trades brokerages will label pricing as stale and assign it zero. Such as what one is dealing with on WTREP.

 

[brokrken]

OTC (via new SEC regs) put the clamp on SLMNP. It just got added to “the no trade list”. As the retail brokers catch this, few people will be able to buy, though may allow to sell. One runs the risk of being trapped in an untradeable issue or sell at a fleece pricing.
I sold mine out early today after someone posted on another site it got put on list. I am taking 2 issues to the dark side, but dont want anymore of these types. Thanks SEC!

Well, heck. I guess I'm likely stuck with it, which won't matter much if I keep getting the divy. I do have a sell order in now, though, in case there are still some buyers out there

 

[Winemaker]

When I saw the price plunge the other day, I thought some mutual fund was window dressing at the 3rd quarter's end. I wasn't trying to snooker anyone! I picked up some 10 shares myself.

 

[pb4uski]

Well, heck. I guess I'm likely stuck with it, which won't matter much if I keep getting the divy. I do have a sell order in now, though, in case there are still some buyers out there

+1 but I had couldn't enter the sell order online and had to call... as long as it keeps paying the dividend, which I expect that it will, I'm not sure how much I care about the lack of liquidity.

 

[pb4uski]

This ruling is punishing a lot of quality issues. The SEC is catching some dolphins in the fishing net and doesnt care. I was on an airplane and couldnt do anything about it last week, but 7000 shares of an old ancient Ocean Spray preferred were being dump at $14, which was a 7.14% QDI yield. It is BB rated and never missed a payment in 70 years. Now I would have taken that one to the dark side at $14, but I couldnt call it in.
Another disconcerting thing about this new ruling is it will likely make your value of the shares eventually show up in your as an amount worth $0.00.
As they wont have bid or ask spreads posted, and with no trades brokerages will label pricing as stale and assign it zero. Such as what one is dealing with on WTREP.

So now I'll probably have two of them... WTREP (delisted) and SLMNP.

 

[Freedom56]

Get ready for fund liquidation of preferred stocks. If the US10Y crosses 2% it will trigger the usual program trading sell-off of preferred ETFs like PFF and PGX. It will be a good opportunity to pick up investment grade preferred stocks of banks and insurance companies well below par. The overall market is long overdue for a major correction. We have meme stocks of money losing companies driven up by traders to ridiculous valuations. I'm getting my list of preferred stocks and corporate bonds and notes ready. We are long overdue for the annual sell-off of fixed income securities.

 

[Sunset]

Get ready for fund liquidation of preferred stocks. If the US10Y crosses 2% it will trigger the usual program trading sell-off of preferred ETFs like PFF and PGX. It will be a good opportunity to pick up investment grade preferred stocks of banks and insurance companies well below par. The overall market is long overdue for a major correction. We have meme stocks of money losing companies driven up by traders to ridiculous valuations. I'm getting my list of preferred stocks and corporate bonds and notes ready. We are long overdue for the annual sell-off of fixed income securities.

Care to share some preferred stocks you favor ?
I'm looking for an old widow.

 

[Sunset]

+1 but I had couldn't enter the sell order online and had to call... as long as it keeps paying the dividend, which I expect that it will, I'm not sure how much I care about the lack of liquidity.

Just be sure to tell your beneficiaries , as I could easily see a beneficiary looking at the account and telling the broker to sell or donate the worthless shares.

I have some truly worthless shares in an account, and the brokerage always leaves me a message that I can donate the shares to them to clean up my account.
I refuse, as a lesson to me to avoid "hot" stock tips in mining.

 

[aja8888]

Looks like with the puff up in interest rates today, the preffereds in my portfolio all took a hit of a few cents per share.

I guess this is start of the "coming events" as the FED has started jawboning about tapering and raising interest rates. And with the two FED bank presidents "resigning" after they sold their stocks, I believe this is a signal for additional bail outs of FED folks who were partaking in insider information before the coming storm. Time will tell on that speculation.

If we have another late 2018 event where the market tanked, I'm sure the FED will come rushing in to save the day again. Or am I dreaming?

 

[Freedom56]

Care to share some preferred stocks you favor ?
I'm looking for an old widow.

This is what I'm looking at, but I will only buy below par:

Data Centers:

DLR-K - 5.85%
DLR-L - 5.2%
DLR-J - 5.25%

Insurance:

PUK-A - 6.5%

Financials:

BAC-B - 6%
BAC-K - 5.88%

COF-H - 6% (short term)

FRC-I - 5.5%

JPM-C - 6%
JPM-D - 5.75%

ZIONO - 6.25%

Exchange Traded Notes:

CTBB - 6.5%
CTDD - 6.75%

 

[Running_Man]

Care to share some preferred stocks you favor ?
I'm looking for an old widow.

Here are all the stocks making more than 1% of PFF, in a massivee selloff of PFF these will go down the most.
Broadcom, being a convertible preferred is dependent on the price of Broadcom stock. That preferred issue is up 100% in a year and will be converted into Broadcom in one year. Wells Fargo is an old favorite that will be around as long as banking is around.

Broadcom Inc 8.00 % Cum Conv Pfd Registered Shs 2019-30.09.22 Series A 2.58%
Wells Fargo & Company 7.5 % Non Cum Perp Conv Pfd Registered Shs A Series L 1.69%
MUTUAL FUND (OTHER) 1.68%
Bank of America Corp 7.25 % Non Cum Perp Conv Pfd Registered Shs Series L 1.51%
Danaher Corporation Cum Conv Red Pfd Registered Shs Series A 1.46%
Danaher Corporation 5 % Cum Conv Pfd Registered Shs 2020-15.05.23 Class B 1.21%
ArcelorMittal Luxembourg S.A. 5.5 % Mandatory Convertible Notes 2020-18.05.23 1.15%
Avantor, Inc. Cum Conv Pfd Registered Shs Series A 1.14%
NextEra Energy, Inc. Corporate Units Cons of Debenture 01.03.25 + 1 PC 01.03.23 1.11%
Citigroup Capital XIII Tr Pfd Secs 2010-30.10.40 Global Fltg Rt 1.07%

 

[Mulligan]

Looks like with the puff up in interest rates today, the preffereds in my portfolio all took a hit of a few cents per share.



I guess this is start of the "coming events" as the FED has started jawboning about tapering and raising interest rates. And with the two FED bank presidents "resigning" after they sold their stocks, I believe this is a signal for additional bail outs of FED folks who were partaking in insider information before the coming storm. Time will tell on that speculation.



If we have another late 2018 event where the market tanked, I'm sure the FED will come rushing in to save the day again. Or am I dreaming?

Historically, sometimes the fear precedes the yield movement and people will rush out the door quick. Another factor that could drop preferreds is credit spread widening between high yield and IG and/or HG and Govt debt.
2018 selloff wasnt yields rising, it was credit spread blow outs. The govt bond yields actually went down while corporate yields and preferreds in tow rose quickly.
Not really much movement yet, but 1.5% still is low. But the new SEC ruling on disclosures is playing havoc on some OTC issues though.