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Below, I focus on preferred stocks from REITs because of cash flows from their clients. Nevertheless, I call these speculative plays because of the depressed shape of the real estate market. In addition, because these issues are from REITs, their dividends are not eligible for the 15% tax rate, and are taxed as ordinary income. I also take care to mention those at or below par value or call price, which is the dollar amount that you get after the security reaches maturity. Generally speaking, you should avoid preferred stocks that trade significantly above par value, because you end up losing the gap between what you paid for and the par value or call price. With the Fed targeting 0%-0.25% for the federal funds rate and slowing global economic growth, you ought to consider the following:

BRE Properties (BRE) (Series D Cumulative)

Recent Price $25.32 per share
Callable? Yes, at $25.00 per share, since Dec 2009
Preferred Stock IPO Dec 2004
Dividends $0.421875 per quarter
All payments made since inception
Next dividend payment should be on April 2
Record date is in second week of March
Current yield 6.6%
After tax yield (35% rate) 4.3%
S&P Rating BB+
52 week trading range $23.89 - 25.50
2008 lows ~$12 (from $25)
Ticker symbol (Yahoo! / Google / Fidelity) BRE-PD / BRE-D / BRE/PD

If you are looking for a real estate position in your portfolio, consider this. I recommend this for aggressive investors looking for such a stake in their asset allotments.

BRE Properties, based in San Francisco, California, focuses on the development, acquisition and management of apartment communities located primarily in the major metropolitan markets of Southern and Northern California and Seattle. BRE directly owns 78 multi-family communities (totaling 21,971 units) and has joint venture interests in an additional 12 apartment communities (totaling 3,856 units). BRE Properties is a real estate investment trust listed in the S&P MidCap 400 Index. View recent company presentations, here.

CommonWealth REIT (CWH) (Series E Cumulative)

Recent Price $24.77 per share
Callable? Yes, at $25.00 per share, after May 14, 2016
Preferred Stock IPO May 2011
Dividends $0.4531 per quarter
All payments made since Q3 2011
Next dividend payment is on February 15
Record date is on February 1
Current yield 7.2%
After tax yield 4.6%
S&P Rating BB+
52 week trading range $21.40 - 25.22
Ticker symbol (Yahoo! / Google / Fidelity) CWH-PE / CWH-E / CWH/PE

This is a relatively new issue, but it is rated at BB+ by S&P and Baa3 by Moody's. So, it is on the margins of being considered as investment grade. I would recommend this security to those looking for a dividend portion of their portfolio, but still are a relatively aggressive investor.

CommonWealth REIT is a real estate investment trust, which primarily owns office and industrial properties located throughout the United States. CWH is headquartered in Newton, Massachusetts.

Health Care REIT (HCN) (Series D Cumulative)

Recent Price $25.91 per share
Callable? Yes, at $25.00 per share, since Jul 2008
Preferred Stock IPO June 2003
Dividends $0.4921875 per quarter
All payments made since inception
Next dividend payment should be on April 16
Record date is in the final week of March
Current yield 7.5%
After tax yield 4.875%
S&P Rating BB
52 week trading range $23.20 - 29.73
2008 lows ~$15 (from $26)
Ticker symbol (Yahoo! / Google / Fidelity) HCN-PD / HCN-D / HCN/PD

This is another ratings splitter. Moody's gives this a Baa3, but S&P rates it at BB. The shares trade well above 25, so consider buying in on a pull back. The continuing mess in Greece should provide plenty of opportunities to do so. I suggest HCN-PD for younger investors who are busy building a nest egg.

Health Care REIT, an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and healthcare real estate. As of September 30, 2011, the company's broadly diversified portfolio consisted of 898 properties in 45 states. Click here, for a recent company presentation.

National Retail Properties (NNN) (Series C Cumulative)

Recent Price $25.4 per share
Callable? Yes, at $25.00 per share, since Oct 2011
Preferred Stock IPO Oct 2006
Dividends $0.4609375 per quarter
All payments made since inception
Next dividend payment should be on March 15
Record date is in the final week of February
Current yield 7.1%
After tax yield 4.6%
S&P Rating BB+
52 week trading range $22.83 - 25.99
2008 lows ~$13 (from $26)
Ticker symbol (Yahoo! / Google / Fidelity) NNN-PC / NNN-C / NNN/PC

Moody's brands this with a Baa3, and again, here is another example that was formerly speculative but is now truly investment grade. Shares can be called at any time, which pushes arbitrageurs to hug the call price of $25. Significant retail assets support payments. If your taste is in retail, take a serious look. I would go as far as to say that individuals in their 50s should consider replacing some of their overvalued pharma and consumer staples dividend stocks with these types of units.

National Retail Properties invests primarily in retail properties subject generally to long-term, net leases. As of September 30, 2011, the company owned 1,298 investment properties in 47 states with a gross leasable area of approximately 15.3 million square feet.

Realty Income (O) (Class E Cumulative)

Recent Price $25.27 per share
Callable? Yes, at $25.00 per share, since Dec 2011
Preferred Stock IPO Nov 2006
Dividends $0.140625 per month
All payments made since inception
Next dividend payment should be on March 15
Record date is in the final week of February
Current yield 6.6%
After tax yield 4.3%
S&P / Moody's Rating BB+ / Baa2
52 week trading range $24.27 - 25.96
2008 lows ~$13 (from $25)
Ticker symbol (Yahoo! / Google / Fidelity) O-PE / O-E / O/PE

Realty Income is a formerly speculative play that in my opinion is an investment grade product. The preferred shares are selling right around their callable price. In effect, investors get a 6.6% yield without significant potential for capital impairment because substantial real assets back these preferreds. Also, the greatest advantage is monthly dividends. The relatively narrow trading range also is appealing. Consider this if you are a more mature income investor with a medium risk profile.

Source: Preferred Stocks To Consider For Big Yields From Real Estate