Income Deposit Securities

[Tony Tampa]

Has anyone had any experience with these?
Thoughts, pros and cons?

 

[brewer12345]

Never heard of them. Got a link or explanation?

 

[Tony Tampa]

They trade on Amex. They pay a monthly income stream based on interest payments on the notes and dividend income, if any, on the common stock.
Designed to distribute nearly all free cash flow to investors.
Issuers are mostly mature, relatively stable businesses.
One such security is symbol OTT, a rural phone company in the south.

 

[brewer12345]

Ah, like what B&G Foods (BGF) did. I think they can be good at a price, but like most everything that pays fat yield, they have been bid up a lot in the last few years.