Seeking Alpha

Doug K. Le Du

 
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  • Are Lower Tax Preferred Stock Dividends Really A Better Deal?
    Tue, Dec. 2 33 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
    Mon, Oct. 27 GDP, HSBC, MHO 7 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 • Mon, Sep. 22 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
    Mon, Aug. 18 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
    Mon, Jul. 14 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
    Mon, Jun. 23 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
    Tue, May. 27 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
    Mon, May. 12 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
    Mon, Apr. 21 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
    Mon, Apr. 7 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 • Mon, Feb. 10 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
  • 17 New Preferred Stocks Offer 6.65% And More Diversification
    May. 13, 2013 AHL, AI, BBT 25 Comments
  • Moody's And Preferred Stock Investors View Same Market But See Very Different Risks
    Editors' Pick • Apr. 29, 2013 GE, PRU, CTL 50 Comments
  • 9 New Preferred Stocks Provide Increased Principal Protection
    Apr. 15, 2013 AF, C, DDR 23 Comments
  • Investment Grade Preferred Stocks Still Available For Less Than $25: Q1 2013 Update
    Editors' Pick • Apr. 1, 2013 BAC, JPM, RBS 30 Comments