Value, growth at reasonable price, small-cap, long-term horizon

Banco Popular: Trading Under Par, The Preferred Stock Of This Regional Bank Is Attractive

A Matter of Preference

Preferred stocks are often some of the most unloved securities on the market, usually for good reason. While preferred securities are primarily attractive to investors because of their high yields and special tax status, these advantages are tempered by the fact that preferreds rank junior to bonds and they can have their dividends suspended at the will of company management. Unlike common stock, shareholders of preferred securities also do not have the chance to participate in the appreciation of a company's equity (unless preferreds are convertible to shares of common stock). Preferreds can also be called back early at par value, exposing investors to reinvestment risks and, should the issue be traded over par, potentially a...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details