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Doug K. Le Du  

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  • Preferred Stock Market Q1/2015: Investment Grade Preferred Stocks Available Below $25
    Mon, Apr. 6 CTL, GDP, HSBC 20 Comments

    Summary

    • There are currently 39 investment grade preferred stocks selling for a market price below $25.
    • The percentage of the market occupied by investment grade securities that are priced below $25 has fallen to 12 percent, down from 31 percent a year ago.
    • Until the Fed starts backing out of our market, preferred stock investors will need to look harder to find high quality preferred stocks in today’s market for sub-$25 prices.
  • How To Rate An Unrated Preferred Stock
    Wed, Mar. 4 CORR, CUBE, MNR 13 Comments

    Summary

    • Preferred stock issuers are not having their securities rated as frequently as they used to.
    • Many unrated preferred stocks are issued by high quality companies that would otherwise earn investment grade ratings.
    • Preferred stock buyers can use a 'Best-In-Show' approach to rate an unrated preferred stock without having to become an industry expert.
    • With this approach, you no longer have to determine if the target company's key metrics are good or bad; you just need to see if they are better or worse.
  • Preferred Stock Versus Common Stock Investing Results
    Mon, Feb. 2 SPY 26 Comments

    Summary

    • While common stock value appreciation was 11.5 percent during 2014, preferred stock value appreciation ended the year at 9.5 percent.
    • But common stock dividends only offered an average of 1.9 percent in dividend yield to shareholders, while high-quality preferred stocks offered 7.1 percent.
    • While offering lower investment risk, combined preferred stock returns (value plus dividends) outperformed common stock returns during 2014.
  • Preferred Stock Buyers Change Tactics For Double-Digit Returns
    Tue, Jan. 6 JPM 22 Comments

    Summary

    • Gains plus dividends delivered an average 13.79 percent effective annual return to savvy preferred stock investors during 2014.
    • 83 percent of the new preferred stocks issued during 2014 were distributed to the market using the wholesale Over-The-Counter stock exchange.
    • The average 2014 OTC open price for newly introduced preferred stocks was $24.89 per share.
    • In addition to the average 6.81 percent dividends, those same shares are selling for an average of $25.60 today.
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal?
    Dec. 2, 2014 35 Comments

    Summary

    • Most risk-averse preferred stock investors would probably avoid all but six of today’s Qualified Dividend Income preferred stocks.
    • The lower coupon rate that QDI-designated preferred stocks offer often eliminates the tax savings when compared to similar non-QDI alternatives.
    • Favoring QDI-designated preferred stock for your regular income (non-IRA) account may not be delivering the after-tax benefit that you’ve been counting on.
  • Preferred Stock Market Snapshot: Investment Grade Preferred Stocks Available Below $25
    Oct. 27, 2014 GDP, HSBC, MHO 8 Comments

    Summary

    • 71 investment grade preferred stocks are now available for less than their $25 par value.
    • Average preferred share price is at $25.16 after October's oil price plunge.
    • Jittery value investors are creating volatility and opportunity for preferred stock buyers.
  • Preferred Stock Buyers - Be Sure You're Watching The Right Indicator
    Editors' Pick • Sep. 22, 2014 50 Comments

    Summary

    • Due to the Fed’s cheap money policy, high quality preferred stock yields are about double the dividend yield provided by the same company’s common stock.
    • Banks now hold $3 trillion in excess reserves beyond today’s regulatory requirements so changes to the federal funds rate will not be as effective as they have historically been.
    • Income investors who are watching the federal funds rate as a leading indicator of rate direction are watching the wrong metric.
  • Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks
    Aug. 18, 2014 AIV 11 Comments

    Summary

    • Dwindling distressed home inventory has produced an increase in apartment rental income and occupancy for AIMCO.
    • Focused on earning an investment grade debt rating from Fitch, Q2 preferred stock issuance has helped to reduce debt and increase unencumbered property portfolio.
    • Pending expiration of the tax credit compliance period will allow the company to start selling its affordable housing portfolio next year.
    • The 28 percent YTD increase in AIMCO’s common stock price has pushed its yield down to 3.2 percent, making the company’s 6.7 percent preferred stock offerings more attractive.
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases
    Jul. 14, 2014 ALL 46 Comments

    Summary

    • Contrary to economists' predictions, preferred stock prices have been increasing all year.
    • Buyers are now accepting 0.78 percent less yield for the same risk.
    • The price of Allstate's new Series F preferred stock increased by over $1 per share (4 percent) in 30 days.
    • During periods of increasing preferred stock prices, buyers should change tactics to find sub-$25 prices.
  • American Realty Capital Properties Preferred Stock, Opportunities And Risks
    Jun. 23, 2014 ARCP 43 Comments

    Summary

    • American Realty Capital Properties’ aggressive growth-through-acquisition strategy has increased the risk associated with the company’s common stock.
    • The risks associated with recent transactions have increased the volatility of the company’s common stock and produced objections from shareholders.
    • With a 7.3% current yield, a $2 discount to par and cumulative dividends, this REIT’s preferred stock may offer a lower-risk opportunity than the company’s common stock.
  • American Homes 4 Rent Preferred Stocks, Opportunities And Risks
    May. 27, 2014 AMH 9 Comments

    Summary

    • The three preferred stocks offered by AMH are unique in their structure.
    • Shareholders are able to share in the appreciation of home values.
    • Dividends are cumulative, but the securities are unrated for this new company.
  • Today's Preferred Stock Marketplace; What A Difference A Year Makes
    May. 12, 2014 DIA, SPY, QQQ 28 Comments

    Summary

    • The highest quality preferred stocks are providing an average dividend yield of 6.75 percent.
    • 6.75 percent is 1.9 times the dividend yield being provided by the same company's common stock.
    • Rates have been stable during 2014 despite QE taper; income investors have already priced in QE exit.
  • Affiliated Managers Group Preferred Stock: Opportunities And Risks
    Apr. 21, 2014 AMG 10 Comments

    Summary

    • AMG offers two investment-grade Exchange-Traded Debt Securities.
    • MGR is more suitable to today's risk-averse income investor.
    • AFM has a non-competitive yield, and is consistently overpriced.
  • Goodbye Fed - 2014 Sees Preferred Stock Investors Shed QE Jitters
    Apr. 7, 2014 BAC, DLR, GDP 18 Comments

    Summary

    • 98 investment grade preferred stocks now available for less than $25.
    • March price action implies complete QE exit already being "priced in" by preferred stock investors.
    • Average yield for 40 highest quality preferred stocks now at 6.8 percent.
  • AG Mortgage Preferred Stocks: Opportunities And Risks
    Editors' Pick • Feb. 10, 2014 MITT 34 Comments
  • 2013 Delivers Higher Dividend Income At Lower Prices To Preferred Stock Investors
    Dec. 31, 2013 AIV, PRE, PSA 63 Comments
  • Aflac, Inc. Preferred Stock Redefines Long-Term Income Investing
    Dec. 16, 2013 AFL 30 Comments
  • Aegon, N.V. Preferred Stocks: Opportunities And Risks
    Nov. 25, 2013 AEG 23 Comments
  • Variable-Rate Preferred Stocks Underperform Their Fixed-Rate Cousins
    Nov. 12, 2013 MET 15 Comments
  • Preferred Stock Yields Remain Stable Despite Weak Jobs Report
    Oct. 28, 2013 ALL 25 Comments
  • Preferred Stock Or 10-Year Treasury Yield - Something's Got To Give
    Oct. 14, 2013 IEF, DTYL, ITE 30 Comments
  • Have Preferred Stock Investors Already Moved Beyond QE?
    Sep. 30, 2013 PFF 46 Comments
  • Preferred Stock Yields Edging Up In Advance Of Fed Meeting
    Sep. 16, 2013 CTL, HPT, TDS 21 Comments
  • All Investment Grade Preferred Stocks Are Not Created Equal
    Sep. 4, 2013 NEE, PBI 22 Comments
  • Preferred Stock Dividend Yield Now Double That Of Same Company's Common Shares
    Aug. 26, 2013 GS, NNN, VNO 26 Comments
  • Why Falling Prices Should Be Welcomed By Preferred Stock Investors
    Aug. 12, 2013 WFC 76 Comments
  • Preferred Stocks End July Favoring Buyers - Higher Reward For Lower Risk At Sub-$25 Prices
    Jul. 30, 2013 AEG, BXP, CMCSA 34 Comments
  • 113 Investment Grade Preferred Stocks Available Below $25: Q2 2013 Update
    Jul. 9, 2013 C, CTL, GS 9 Comments
  • 5 New Preferred Stocks Clear 7%, First Time Since July 2012
    Jul. 1, 2013 AFSI, AINV, ALL 49 Comments
  • Preferred Stock Prices Return To Pre-QE2 Level, Bargain List Grows For Buyers
    Jun. 24, 2013 ARE, CTL, DLR 51 Comments
  • Preferred Stock Buyers: Time To Start Paying Attention
    Jun. 12, 2013 63 Comments
  • Investment Grade Preferred Stocks At 6.15%, Buyers Become More Risk Tolerant
    May. 29, 2013 CTL, D, DLR 17 Comments