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

[RetireeRobert]

Anyone have any comments on RPT Realty's cumulative convertible preferred series D preferred stock? It pays $3.63 annual dividend. Current yield in the 7%'s range. RPT-PD

https://finance.yahoo.com/news/rpt-r...211500758.html

[Mulligan]

Quote:

Originally Posted by aja8888 Thanks, will do!

Aja, Keep in mind, just to make sure, the relative value in TDE is its current yield (until if or ever its redeemed) not any price appreciation. This is why it yields so much more than TDA because buyers wont bid it up over concern of a call notice.
Now if yields would ever shoot up it will be more price protected because of the current high yield it has in relation to sister TDA.

[aja8888]

Quote:

Originally Posted by Mulligan Aja, Keep in mind, just to make sure, the relative value in TDE is its current yield (until if or ever its redeemed) not any price appreciation. This is why it yields so much more than TDA because buyers wont bid it up over concern of a call notice. Now if yields would ever shoot up it will be more price protected because of the current high yield it has in relation to sister TDA.

Thanks, understand.

[CoolChange]

Quote:

Originally Posted by RetireeRobert Anyone have any comments on RPT Realty's cumulative convertible preferred series D preferred stock? It pays $3.63 annual dividend. Current yield in the 7%'s range. RPT-PD https://finance.yahoo.com/news/rpt-r...211500758.html

The thing that I immediately noticed is that the price of this issue seemed to take much longer to recover than many other prefereds during last year's route. Personally, I'd have to spend quite some time digging into this issue and the underlying company before pulling the trigger.

[Freedom56]

CTAA (Qwest 7% 2056) has been called.

https://news.lumen.com/2021-02-01-Lu...est%20Notes%22).

The final value of this issue will be $25 plus 7.29 cents of accrued interest.

[bobandsherry]

Quote:

Originally Posted by Freedom56 CTAA (Qwest 7% 2056) has been called. https://news.lumen.com/2021-02-01-Lu...est%20Notes%22). The final value of this issue will be $25 plus 7.29 cents of accrued interest.

Another example for why should consider exiting any holdings in issues past call, with a big fat coupon rate and sitting well above par + div.

[Mulligan]

I agree, Bob. The only issue I own that violates that is ABR-A which I trade a few times in between divi cycle and collect divi also. They just declared this week again, so Im good to go for another round of play.

[Golden sunsets]

Quote:

Originally Posted by Mulligan I agree, Bob. The only issue I own that violates that is ABR-A which I trade a few times in between divi cycle and collect divi also. They just declared this week again, so Im good to go for another round of play.

Do you feel this should include CNLPL, CNTHP, and AILLL? As I recall, way back when this thread started, as a learning tool for myself, there was a reason these UTE's were unlikely to be called.

[Mulligan]

Quote:

Originally Posted by Golden sunsets Do you feel this should include CNLPL, CNTHP, and AILLL? As I recall, way back when this thread started, as a learning tool for myself, there was a reason these UTE's were unlikely to be called.

Golden I tend to buy and sell and trade all my preferreds as they tend to move up and down in a trading range, so this is the lens I look through with my thoughts. This gooses returns significantly for me. The main issues with your preferreds mentioned above for me isnt the likelihood of call. Its the lower yield from price appreciation via risk/reward of a call at 20% plus above par price.
If AILLL would drop to $28, I would be back in, but would be right back out at $29.50.. Same type scenarios for CLP types. Connecticut regulatory agency stated in last filing 2 years ago, CLP doesnt want to redeem their preferreds. They grant the costs of them to be recovered so there really isnt a compelling reason to redeem. But I cant get any trading alpha on those at $60 and AILLL at $30, so I never own them at current prices.

[Golden sunsets]

Quote:

Originally Posted by Mulligan Golden I tend to buy and sell and trade all my preferreds as they tend to move up and down in a trading range, so this is the lens I look through with my thoughts. This gooses returns significantly for me. The main issues with your preferreds mentioned above for me isnt the likelihood of call. Its the lower yield from price appreciation via risk/reward of a call at 20% plus above par price. If AILLL would drop to $28, I would be back in, but would be right back out at $29.50.. Same type scenarios for CLP types. Connecticut regulatory agency stated in last filing 2 years ago, CLP doesnt want to redeem their preferreds. They grant the costs of them to be recovered so there really isnt a compelling reason to redeem. But I cant get any trading alpha on those at $60 and AILLL at $30, so I never own them at current prices.

Good to Know. The 4 I own were purchased years ago, around when I started this long running thread. (I own WFC-L as well). I acquired more of each when my Mom passed away last year, but hers were as old as mine. I haven't considered buying more due to the premium over par, so I just sit with these, and a 6-6.5% yield. As I recall the Conn Lt & Power would have to be paid out at a premium as well. If the prices came down I might add to my dormant collection, but I don't think they even came down much last March, so probably unlikely to happen.

[Sunset]

I have a few hundred CNTHP , and while they are above par, they pay 5.7% interest.

This interest/div looks a lot better than it did 3 years ago, so I haven't considered selling.

I have nothing that I would buy to replace it..

[RE2Boys]

I picked up some CNTHP last March for $52.10, should have tried for more but not much out their near the call price. I am slowly reducing my inventory of the Connecticut Light by have a standing offer to sell about 10% at a time at $62. If someone wants it that bad, I'm happy to oblige. Very close to selling out IPLDP that I picked up last summer at par and how has three dividends on this past call utility.

[Born2Fish]

Quote:

Originally Posted by Born2Fish Thanks for the heads up on EP-C.

Quote:

Originally Posted by aja8888 Jump on it.Up about two years worth of dividends above par. Buy it back under $50 later. I just sold all I had @$54.40.

I bought EP-C back this morning at $50.1.

[Sunset]

Are folks holding on to their WCC-A (WCCPRA) ?

I was looking at it's really gone up since July last year. At the same time it's paying out over 10%.

I'm thinking of keeping it unless others have another view

[aja8888]

Quote:

Originally Posted by Born2Fish I bought EP-C back this morning at $50.1.

Nice! I need to keep an eye on it as I would love to get 500 around $49.50.

[bobandsherry]

Quote:

Originally Posted by aja8888 Nice! I need to keep an eye on it as I would love to get 500 around $49.50.

That's been moving a lot, relative to other issues. I got in at $49.98 on 2/4. Then a GTC at $52.75. it executed on the 8th. Got my hook back in the water.

[aja8888]

Quote:

Originally Posted by bobandsherry That's been moving a lot, relative to other issues. I got in at $49.98 on 2/4. Then a GTC at $52.75. it executed on the 8th. Got my hook back in the water.

I may not get it at that price ($49.50) and if oil continues up, I may just pick it up under $51. It's worth keeping long term.

[Mulligan]

Quote:

Originally Posted by Sunset Are folks holding on to their WCC-A (WCCPRA) ? I was looking at it's really gone up since July last year. At the same time it's paying out over 10%. I'm thinking of keeping it unless others have another view

Sunset, You really have to decide if the YTC is ok for you, or whether you want to ring the capital gain bell. The YTC is something like sub 5%. And this may be fine as you really need to view this as a term dated issue. Company is already deleveraging and doing fine, so they will redeem first chance they can get most likely.

[Sunset]

Quote:

Originally Posted by Mulligan Sunset, You really have to decide if the YTC is ok for you, or whether you want to ring the capital gain bell. The YTC is something like sub 5%. And this may be fine as you really need to view this as a term dated issue. Company is already deleveraging and doing fine, so they will redeem first chance they can get most likely.

Thanks for pointing this out.
I hadn't thought of it this way, that my current rate is 8.7% but will lose $5.5 when called, so even at 4 yrs out, that really pulls down the YTC rate.

[bobandsherry]

Quote:

Originally Posted by Born2Fish I bought EP-C back this morning at $50.1.

I've had my hook out for a week, finally got a nibble with 47 shares at $50.06. But still bait on the hook, will see what else I might catch.

Update: I kept getting nibbles and a couple hours later I pulled in my line with a full catch. With all the small fills the days low doesn't show my $50.06 purchases. Anyone reel in a lower price?