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Income-seeking investors willing to dig through the trove of individual bonds and individual preferred stocks currently available for purchase will find many enticing yields. Investors will also find securities that span a broad range of the risk spectrum. Seeking Alpha readers who follow my newsletter should remember that each month I outline what I think are the best investment ideas from a risk/reward standpoint. These ideas are geared toward investors focused on generating high levels of income. In this article, I would like to mention three companies with preferred stocks that aren't quite up to par for inclusion in my newsletter but are still worth a look for investors willing to take on a bit more risk for higher levels of income. Each of the following three companies have preferred stocks outstanding that are currently yielding over 7%.

Digital Realty Trust (NYSE:DLR) is a data center REIT that offers three series of cumulative preferreds.

· The Series E cumulative preferred pays in quarterly distributions a $1.75 annual dividend. It is callable for any reason on or after September 15, 2016 at $25. Based on its recent close of $22.84, DLR-E is yielding 7.66%. The Prospectus Supplement can be found here.

· The Series F cumulative preferred pays in quarterly distributions a $1.65625 annual dividend. It is callable for any reason on or after April 5, 2017, at $25. Based on its recent close of $21.48, DLR-F is yielding 7.71%. The Prospectus Supplement can be found here.

· The Series G cumulative preferred pays in quarterly distributions a $1.46875 annual dividend. It is callable for any reason on or after April 9, 2018 at $25. Based on its recent close of $19.00, DLR-G is yielding 7.73%. The Prospectus Supplement can be found here.

CoreSite Realty (NYSE:COR) is a data center REIT that offers one series of cumulative preferred stock.

· The Series A cumulative preferred pays in quarterly distributions a $1.8125 annual dividend. It is callable for any reason on or after December 12, 2017, at $25. Based on its recent close of $23.649, COR-A is yielding 7.66%. The Prospectus Supplement can be found here.

Brandywine Realty Trust (NYSE:BDN) is a REIT focused on office, industrial and mixed-use properties that offers one series of cumulative preferred stock.

· The Series E cumulative preferred pays in quarterly distributions a $1.725 annual dividend. It is callable for any reason on or after April 11, 2017, at $25. Based on its recent close of $23.92, BDN-E is yielding 7.21%. The Prospectus Supplement can be found here.

Additionally, there are specific reasons for which each of the preferreds can be called prior to the callable dates mentioned above. Please consult the prospectus for more details.

Before you jump at the opportunity to collect more than 7% yields in today's historically challenging interest-rate environment, there are several things to keep in mind regarding preferred stocks. Below is a series of bullet points referencing several preferred stock considerations. The bullet points are quoted directly from the most recent version of The Insider's Guide to Income Investing, a free PDF that introduces investors to the world of income investing and discusses the role various asset classes and asset-class categories might play in the income-focused investor's portfolio:

· In general, preferred stocks offer higher yields than the same company's common stock

· Preferred stocks usually offer higher yields than the same company's bonds

· Preferred stocks offer greater protection to an income stream than common stocks do

· Preferred stocks provide the opportunity for some (albeit small amounts of) capital appreciation

· Perpetual preferreds carry an element of interest-rate risk that individual bonds do not carry. For this reason, from a principal protection standpoint, entry points are extremely important.

· Every public company does not offer preferred stock, so your options are somewhat limited. But many REITs, utilities and financials do.

· Liquidity can be an issue when trading preferred stocks.

· Some preferred stock dividends qualify for favorable dividend tax rates. Others do not.

There are plenty of high-quality preferred stocks yielding between 6% and 7%. But income-focused investors looking to tactically add risk to a diversified preferred stock allocation might also consider companies with preferreds yielding more than 7%. Digital Realty Trust, CoreSite Realty, and Brandywine Realty Trust are three such examples.

*Before purchasing individual securities, remember to do your own due diligence on the financial profiles of the companies under consideration. Only you can decide if purchasing individual securities is right for you.

Source: 7% Yielding Preferreds For Income-Hungry Investors

Additional disclosure: I am long DLR's Series G preferred.