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

[capjak]

Starting Line Up for 2019 (largest value to smallest value):

1. WFC-L
2. CHSCM
3. AILLL
4. CNLPL
5. CHTHP
6. NISOP
7. KTH

6.2% Div Yield

 

[Mulligan]

Good to hear from you again Cap!
I think any starting pitcher would be happy with the run support your starting line up will give him!

 

[Mulligan]

Nice to see CHSCM bounce back strongly today:

https://www.google.com/search?clien...0&bih=534&dpr=1#scso=_MCUtXMWFII3AtQWom6pA2:0

Hanging strong is paying off for you, Aja!
I have done some flipping today...I bought 400 of CHSCO around 25.60 the other day, and flipped 200 at over 26.30 today. Flipped 400 of EBBNF a bit over $19 today after buying them at 18.20 the other day...Still holding a 1000 of them which is plenty for a blind grey market issue... But a small amount of QTS-B under $22 and DCP-B at 21.67 I think. Bought 400 more LANDP at 25.33 today. Also bought a bit more of MTB- at par today since shares were just sitting there to be bought at par. I will need to add up my shares and see which issues are in my top starting lineup

 

[Golden sunsets]

Starting Line Up for 2019 (largest value to smallest value):



1. WFC-L

2. CHSCM

3. AILLL

4. CNLPL

5. CHTHP

6. NISOP

7. KTH



6.2% Div Yield

Cap; I own 4 of your 7 with a similar yield[emoji106]

 

[capjak]

I did a lot of day trading this year I bought NISOP one day. All others were also in my starting line up Jan 2018, but I did sell a few in 2018

 

[Mulligan]

My biggest ones holding now are in no particular order are ...AILLL, MTB-, EBBNF, FIISO, HE-U, ALLY-A, LANDP, NISOP.
Overall though I have 19 preferreds if I counted correctly.

 

[Coolius]

Starting Line Up for 2019 (largest value to smallest value):

1. WFC-L
2. CHSCM
3. AILLL
4. CNLPL
5. CHTHP
6. NISOP
7. KTH

6.2% Div Yield

I own 6 of the above, in a different ranking order. Do not have CHSCM, but have CHSCP


And my aggregate dividend yield is lower, having bought many at higher prices in previous years.

 

[Mulligan]

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

Looks like a few of us liked a piece of that new little ute preferred NISOP, huh? 6.5% QDI call protected and a regulated Ute isnt a bad little base builder for a long term hold.

 

[Freedom56]

From Barron's today:

https://www.barrons.com/articles/re...to-bond-market-clues-51546460802?mod=hp_DAY_3

The 1 year treasury note is now higher than the 2,5 and 7 year notes. The 10 year note yield is about to fall below the 1 year (maybe tomorrow). Meanwhile those high grade preferred stocks from Capital One (COF-PD, COF-PC, COF-PF) that were one sale last week due to fund redemptions, were bought back and are all over par again and much faster than previous sell-offs. We will likely see new all-time lows for the 10 year note sometime this year. It may get there fast as there was a heavy short position on the 10 year note with the belief that yields will be much higher due to rate hikes and a strong economy. The strong economy in my opinion was a mirage created by more consumer debt. This is going to be a horrible bear market for equity investors. Many will re-think the notion that you need high equity allocation in your portfolio during retirement.

 

[Mulligan]

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

From Barron's today:

https://www.barrons.com/articles/re...to-bond-market-clues-51546460802?mod=hp_DAY_3

The 1 year treasury note is now higher than the 2,5 and 7 year notes. The 10 year note yield is about to fall below the 1 year (maybe tomorrow). Meanwhile those high grade preferred stocks from Capital One (COF-PD, COF-PC, COF-PF) that were one sale last week due to fund redemptions, were bought back and are all over par again. Much faster than previous sell-offs. We will likely see new all-time lows for the 10 year note sometime this year. It may get there fast as there was a heavy short position on the 10 year note with the belief that yields will be much higher due to rate hikes and a strong economy. The strong economy in my opinion was a mirage created by more consumer debt.

I have made some real good money the past two weeks...I love volatility especially when bouncing between liquid and illiquids...But I have also started rooting around in issues that are call protected. At one time almost all issues owned where above par and past call, which were the best flippers for better part of 2 years. But keeping my eye on other possible call protected issues but not at the expense of quality and what I am willing to own though.
That being said buying more MTB- at par was a no brainer. There are very few bank issues with the credit rating this preferred has and 6.375% 2/3 of the way to another divi, also. But no guarantee it will be around for long though.

 

[Freedom56]

I have made some real good money the past two weeks...I love volatility especially when bouncing between liquid and illiquids...But I have also started rooting around in issues that are call protected. At one time almost all issues owned where above par and past call, which were the best flippers for better part of 2 years. But keeping my eye on other possible call protected issues but not at the expense of quality and what I am willing to own though.
That being said buying more MTB- at par was a no brainer. There are very few bank issues with the credit rating this preferred has and 6.375% 2/3 of the way to another divi, also. But no guarantee it will be around for long though.

I picked up COF-PD, COF-PC, COF-PF and LMHA at great prices last week. COF-PD traded at a 6.7% yield last week. As the 10 year yield tumbles and the 30 year yield gets pulled down, there will be a stampede once again for preferred stocks and bonds once again. This is like 2014 all over again except the leveraged funds don't make too much sense with an inverted yield curve.

 

[Mulligan]

MTB- hit $955 last week and I snagged some there too. I suspect like you do that if treasuries stay down the search for yield will pick up. I had to go into liquids to buy deals myself the past couple weeks because the illiquids just flat havent really moved through the recent downturn. NISOP was a huge disappointment as it was being sent to market in an incredible tough preferred market and just refused to blink. I got some at $24.88 and $24.72 and bought more at par. But it never got sucked into the downdraft despite a then buyers strike in preferreds.
I just wont own CEFs. Im sure they are fine, but I like my own cooking and care about my money more than they do about mine.

 

[brokrken]

Cap; I own 4 of your 7 with a similar yield[emoji106]

Looks like I'm the outlier here. I don't own any of them

However, here is my starting lineup for 2019:

LANDP
SSW-G
SPLP-A
IPL-D
NSS
RILYZ
LMHA
TBB

I'm not normally a flipper, but got in real cheap, $23.40, on that LMHA last week and now its near par. May just have to take that gain.

 

[bobandsherry]

Looks like I'm the outlier here. I don't own any of them

However, here is my starting lineup for 2019:

LANDP
SSW-G
SPLP-A
IPL-D
NSS
RILYZ
LMHA
TBB

I'm not normally a flipper, but got in real cheap, $23.40, on that LMHA last week and now its near par. May just have to take that gain.

I guess I'm mostly an outlier as well

AILLL
ALLY-A
CDMOP
GLP-A
LANDP
NSS

 

[Mulligan]

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

Bob, I presently own 3 of yours and have owned 5 of the 6 you have this past year... I really went out on the deep end today buying 500 shares of EBRGF at $11.44 today...Its an Enbridge Canadian $25 par (Canadian dollars) preferred. This was bought on OTC grey market but all Canadian... It is 5 year Canadian Tbill plus about 2.5% kicker that was set in 2017. It wont reset until 2022. Its paid out in Canadian so that loses about a quarter of a dollar in currency exchange. Currently about 5.69% yield after conversion which will vary some quarterly... So in this issue one gets several more sets of variables....I like it for a long term counter play. Definitely not loading up and have double the shares in EBBNF which is an Enbridge preferred but is all in US currency and US TBill reset.

 

[bobandsherry]

Bob, I presently own 3 of yours and have owned 5 of the 6 you have this past year... I really went out on the deep end today buying 500 shares of EBRGF at $11.44 today...Its an Enbridge Canadian $25 par (Canadian dollars) preferred. This was bought on OTC grey market but all Canadian... It is 5 year Canadian Tbill plus about 2.5% kicker that was set in 2017. It wont reset until 2022. Its paid out in Canadian so that loses about a quarter of a dollar in currency exchange. Currently about 5.69% yield after conversion which will vary some quarterly... So in this issue one gets several more sets of variables....I like it for a long term counter play. Definitely not loading up and have double the shares in EBBNF which is an Enbridge preferred but is all in US currency and US TBill reset.

As you've been a great source for info I'm sure that collectively we all overlap with your current or recent holdings. While I move in and move out on some securities, my total yearly trades would probably pale to what you do in a month, and sometimes a week

You get further into the weeds with selection of issues that my grey matter can't understand all the mechanics. EBRGF is a good example of that, but I keep looking at the details and learning from your experience. Before finding this forum I hadn't done much with preferred's, but over the past few years I've now moved about 30% of my "play" money (investments not in 401K or cash balance pension fund) from equities and into preferred's and decent income stream. As I look at my investment returns for 2018, my "play" account outperformed my 401K account investments, the movement to preferred's was def a help in that regard. So thanks for continuing to share here.

 

[brokrken]

Bob, I presently own 3 of yours and have owned 5 of the 6 you have this past year... I really went out on the deep end today buying 500 shares of EBRGF at $11.44 today...Its an Enbridge Canadian $25 par (Canadian dollars) preferred. This was bought on OTC grey market but all Canadian... It is 5 year Canadian Tbill plus about 2.5% kicker that was set in 2017. It wont reset until 2022. Its paid out in Canadian so that loses about a quarter of a dollar in currency exchange. Currently about 5.69% yield after conversion which will vary some quarterly... So in this issue one gets several more sets of variables....I like it for a long term counter play. Definitely not loading up and have double the shares in EBBNF which is an Enbridge preferred but is all in US currency and US TBill reset.

Does foreign income tax mute your return on these?

 

[Mulligan]

Does foreign income tax mute your return on these?

If you stay under $300 withheld, (not total dividends just amount withheld) you can offset it without filing form 116. So I will get it back when I file next year. Now per treaty if bought in IRA it is not withheld. In taxable 15% is withheld.

 

[brokrken]

Well, I caught the flip bug from you guys. Just sold my 250 shares of LMHA for $25.80 after holding it for only 2 weeks at a cost of $23.40. That $600 is nearly a year and a half worth of divies! Hopefully this one will pull back again before the next divy in March because I do like it. If not I need to find something else to buy.

 

[steelyman]

I’ve been following this thread since it first started but haven’t the knowledge or skills to do what you all do.

But! I’m proud to say that I bought PFF this week and now feel very brave - ha!

I was surprised to see that this was a no-commission trade at Fidelity, who have some kind of deal on iShares.

 

[Mulligan]

Well, I caught the flip bug from you guys. Just sold my 250 shares of LMHA for $25.80 after holding it for only 2 weeks at a cost of $23.40. That $600 is nearly a year and a half worth of divies! Hopefully this one will pull back again before the next divy in March because I do like it. If not I need to find something else to buy.

Congrats, Ken....Nice flip! Many of those bouned right back didnt they.

 

[Mulligan]

Steely, your patience for waiting paid off as its cheaper now than a year ago. Hope it treats you well!

 

[steelyman]

Steely, your patience for waiting paid off as its cheaper now than a year ago. Hope it treats you well!

Thanks, me too!

- one of the silent readers...

 

[Coolius]

I was also busy doing some flipping as well, although my gains are nowhere near those of Ken or Mulligan.


Sold a portion of my HE-U for $26.12, then a couple days later bought back same qty at $25.86. Hey, $0.28 per share gain is still better than a sharp stick in the eye.


And today, bought 100 shares of NTRSP at $25.11, and decided to flip it just before the market closed at $25.18. Just pennies, but better than a loss.

 

[brokrken]

Congrats, Ken....Nice flip! Many of those bouned right back didnt they.

They really did. I bought more SSW-G and RILYZ around the same time and they've bounced considerably too. Keeping those though as I just added to my position and lowered my average cost.