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

[brokrken]

PB, I switched everything to Schwab a few years back (moving what I had at both Vanguard and Fidelity over). Much easier user interface and I never have the problems that you encounter.

[pb4uski]

Ah, that's an idea. I may go that way.

One thing that I've been looking for that it seems that neither Vanguard or Fidelity can do is to screen preferreds the way I want. Let's say I have some money to invest. I'd like them to run a screen of preferred stocks that have certain ratings (say BB- or better), a market yield of x% or more, a yield-to-call of y% or more, etc. I can easily find the first 2 and I can find some data on the YTC, but I haven't found anything that can do all 3. Does Schwab have anything like that?

[Mulligan]

Quote:

Originally Posted by pb4uski Ah, that's an idea. I may go that way. One thing that I've been looking for that it seems that neither Vanguard or Fidelity can do is to screen preferreds the way I want. Let's say I have some money to invest. I'd like them to run a screen of preferred stocks that have certain ratings (say BB- or better), a market yield of x% or more, a yield-to-call of y% or more, etc. I can easily find the first 2 and I can find some data on the YTC, but I haven't found anything that can do all 3. Does Schwab have anything like that?

PB, You can always leave Fidelity and still use their preferred stock screener. I dont use Fidelity...But I use their screener!

https://research2relay.fidelity.wall...stock/main.asp

There isnt a perfect one, I have three.... Ally is good on IPOs ...very good on getting them traceable. Just recently saved me almost a buck a share when the Seaspan 7.125% finally started trading again on OTC. Vanguard and TD were a day later.. But they all have quirks. How about this one with Ally. Whenever I hold an old illiquid for more than a couple weeks it somehow goes dormant. When I try to trade them it says “You do not own this security”. Even though its clearly in there. I would have to call and that is a mess with them, so I just let them be and hold long term.

[brokrken]

Quote:

Originally Posted by pb4uski Ah, that's an idea. I may go that way. One thing that I've been looking for that it seems that neither Vanguard or Fidelity can do is to screen preferreds the way I want. Let's say I have some money to invest. I'd like them to run a screen of preferred stocks that have certain ratings (say BB- or better), a market yield of x% or more, a yield-to-call of y% or more, etc. I can easily find the first 2 and I can find some data on the YTC, but I haven't found anything that can do all 3. Does Schwab have anything like that?

PB, I actually just do this on quantum.

[pb4uski]

How? I've used quantum's screener and to my knowledge, quantum can't do yield-to-call or market yield. Is there a page in quantum that I missed?

[brokrken]

Quote:

Originally Posted by pb4uski How? I've used quantum's screener and to my knowledge, quantum can't do yield-to-call or market yield. Is there a page in quantum that I missed?

Sorry, you’re right, it doesn’t do all of that. I use my own spreadsheet for that stuff. I know it’s not elegant but works for me

[Texas Proud]

Quote:

Originally Posted by pb4uski I'm close to being done with Fidelity. Amazingly, Vanguard allows me to buy certain tickers online that Fidelity does not. The tickers that Fidelity requires me to call in rather than order online are not exotic at all. I was working around it for a while by simply selling a ticker that Fidelity would let me buy in my Vanguard account and then buying it there and then using the proceeds to buy the ticker that fidelity prohibited me from buying in my Vanguard account... but that is a hassle so I think I'll just rollover the Fidelity tIRA to my Vanguard tIRA. Does anyone with experience with both see any downsides to jettisoning Fidelity? I'll still have his and her HSA accounts at Fido so I'll still be able to access their website and tools.

I am looking to leave Vanguard and Fidelity was an option... but like you it is not anymore...


IIRC it was stated that you could not buy a variable rate issue through Fidelity... that was what tripped me up...


I do have another account with Merrill Edge and it seems OK, but I just do not do enough with them to say if it is the one I will move too... one benefit is that they have a bonus reward rate to their CC if you have enough included....


I think I might try Schwab soon and see if they are the winner... but as of now Vanguard is still my default...

[Sunset]

Quote:

Originally Posted by Texas Proud I am looking to leave Vanguard and Fidelity was an option... but like you it is not anymore... IIRC it was stated that you could not buy a variable rate issue through Fidelity... that was what tripped me up... I do have another account with Merrill Edge and it seems OK, but I just do not do enough with them to say if it is the one I will move too... one benefit is that they have a bonus reward rate to their CC if you have enough included.... I think I might try Schwab soon and see if they are the winner... but as of now Vanguard is still my default...

Merrill Edge will also give you a bonus just for the move, up to $600 for most folks (but if you are moving a lot more than $200,000 , they will go higher).
https://www.merrilledge.com/cmaoffer

[bobandsherry]

Quote:

Originally Posted by pb4uski Ah, that's an idea. I may go that way. One thing that I've been looking for that it seems that neither Vanguard or Fidelity can do is to screen preferreds the way I want.

I don't know if you've seen this, it's not an online screener tool, but has all the data in a Google Sheet and let's you create your own filtering. Lots of details about each issue, about 650 issues included. And it doesn't have a YTC, but does have a YTW.

https://innovativeincomeinvestor.com...w-instuctions/

[pb4uski]

Thanks. Yes, I have seen that and it is the closest thing that I have found to what I am looking for.

[pb4uski]

Quote:

Originally Posted by brokrken PB, I switched everything to Schwab a few years back (moving what I had at both Vanguard and Fidelity over). Much easier user interface and I never have the problems that you encounter.

Quote:

Originally Posted by pb4uski Ah, that's an idea. I may go that way. One thing that I've been looking for that it seems that neither Vanguard or Fidelity can do is to screen preferreds the way I want. Let's say I have some money to invest. I'd like them to run a screen of preferred stocks that have certain ratings (say BB- or better), a market yield of x% or more, a yield-to-call of y% or more, etc. I can easily find the first 2 and I can find some data on the YTC, but I haven't found anything that can do all 3. Does Schwab have anything like that?

I decided to give Schwab a try. They make it frightenly easy to create and account and to set up a transfer of assets from my Fidelity tIRA to my new Schwab tIRA. Probably all of 5 minutes for each step and all online.

I also like their preferred stock screener tool... I would like it even better if it included yield-to-call in addition to market yield. Another neat eature is that you can look at market yields for all issues of a particular issuer on a single screen.... below is an example of WFC preferreds.

[pb4uski]

Since I had a few posts in the old thread regarding yield-to-call information and calculators, etc. I figured that I would share this that I found on QuantumOnline.... not sure how old it is as the page I found it on isn't dated... but it is consistent with what I have found... which is nada (other than innovativeincomeinvestor tables include YTW info but they say that it is understated).

Quote:

QuantumOnline does plan of offering Yield to Call (YTC) and Yield to Maturity (YTM) information in the future but at this point we can't say exactly when it will be. In our case, we first have to find a source of affordable current price quotes that we can use on the website and as the basis of the YTC & YTM calculations before we can even begin the programming on the yield information. We also have to find some good formulas for making the yield calculations that do not unduly slow down the loading of our tables. We also do not know of any other website that offers YTC and YTM information or even YTC and YTM calculators. One suggestion we have in this regard is that some of the Financial Calculators (Hewlett-Packard, Texas Instruments, etc.) do offer YTC and/or YTM calculations. A second suggestion is that it is our understanding that Excel spreadsheets also offer YTC and/or YTM calculations but we have never attempted to confirm this ourselves.

[bobandsherry]

Quote:

Originally Posted by pb4uski Since I had a few posts in the old thread regarding yield-to-call information and calculators, etc. I figured that I would share this that I found on QuantumOnline.... not sure how old it is as the page I found it on isn't dated... but it is consistent with what I have found... which is nada (other than innovativeincomeinvestor tables include YTW info but they say that it is understated).

They say that necessity is the mother of invention. Maybe hook up with a coder and the two of you can create a site. Go the way of Quantum and request donations to recoup / offset your development and operational costs. Then maybe market it to other companies that offer screeners. Never you what that can turn into.

[pb4uski]

I'm retired and not looking for a job.

[brokrken]

Quote:

Originally Posted by pb4uski I'm retired and not looking for a job.

[Coolius]

The recent jumps in the 10 yr UST rate has caused some panicky knee jerk reactions in the preferred/income sector.


Might be a good time to watch if buying opportunities emerge.


For example, POWER REIT Pfd, PW-A, now down to $25.30 or so. Accrued interest plus the 30 day notice is about $0.32 , so even if called tomorrow for Feb 12, one would receive $25.32. If not called, then yield is about 7.5% until such time as they do call.


Bear in mind that call risk is very high, this is not a buy and hold issue. I would be ecstatic if the next complete dividend were paid out.

[Texas Proud]

OK... I used to use dividends.com to look at upcoming ex divi dates and trade on them... but now it is a premium site...


Any other sights that will give upcoming ex-divi dates for pref shares?

[pb4uski]

Quote:

Originally Posted by Coolius The recent jumps in the 10 yr UST rate has caused some panicky knee jerk reactions in the preferred/income sector. Might be a good time to watch if buying opportunities emerge. For example, POWER REIT Pfd, PW-A, now down to $25.30 or so. Accrued interest plus the 30 day notice is about $0.32 , so even if called tomorrow for Feb 12, one would receive $25.32. If not called, then yield is about 7.5% until such time as they do call. Bear in mind that call risk is very high, this is not a buy and hold issue. I would be ecstatic if the next complete dividend were paid out.

Why do you say that it is not a buy and hold issue? Do you expect it to be called soon? Looks like yield to call is ~0% and if it is called a year from now the yield would be 6.5% and it just gets better after that to as much as 7.67%. Just trying to understand the reasoning for the comment.

[pb4uski]

Quote:

Originally Posted by Texas Proud OK... I used to use dividends.com to look at upcoming ex divi dates and trade on them... but now it is a premium site... Any other sights that will give upcoming ex-divi dates for pref shares?

https://innovativeincomeinvestor.com...eferred-stock/

[Coolius]

pb,


Call risk is exceptionally high with this issue, I expect a call soon. It is way past FC, recent rumblings out of the company have raised call concerns.



I do not know the exact details, but Mulligan is usually on top of these things, so I hope he will chime in and provide the details.


It closed at $25.30 today, buying at this level is not a risk as accrued interest already baked in provides a gain ( although minuscule ) even if called tomorrow.


I do not expect it to remain outstanding much longer, but maybe, just maybe, if they decide to push out the call for a quarter or two.....who knows?