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Doug K. Le Du

 
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  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    While I enjoy sharing my preferred stock research here and elsewhere, there are obviously limits to that before my subscribers will get the urge to fry my bacon. Thanks for your post (LOL).
    Dec 3, 2014. 11:43 AM | 1 Like Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Yes. They are published on the website of my CDx3 Notification Service, which, as I mentioned in the disclosure section, is my subscription service. You can see a screen shot of what my preferred stock database system looks like here and read about its features in the scrolling box below the screen shot:

    http://bit.ly/SrRbNQ

    The site has several one-click "HotLists" listed across the top of each page where subscribers can see various lists of the highest quality securities in one mouse click. The HotLists include the "Bargain Table" which lists the highest quality issues trading below their $25 par; the highest quality Exchange-Traded Debt Securities, highest quality issues that are call-protected, etc.

    The database updates in real-time so the lists are always current. The list of 21 referred to in the article comes from one of those HotLists.

    Thanks for posting.
    Dec 3, 2014. 11:40 AM | 1 Like Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    You might have missed the next-to-last paragraph: "And this analysis does not consider the capital gain/loss/call protection/redemption risk that comes with purchasing shares for above-par prices since the extent to which any of those materialize is unknowable"

    You are correct regarding the premium to par considerations, but that topic, and the strategies that surround preferred stock investing during a period of low rates/high prices, would (and has) consumed several other articles. Thanks for posting.
    Dec 3, 2014. 11:32 AM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Good points Bruce. Figuring out how the QDI treatment fits into one's particular circumstances can be complex. My objective for this article was to highlight the notion that choosing alternatives based on QDI designation alone may not provide the benefit an investor is expecting, exactly for reasons like the one you are pointing out. As always, grinding the numbers, while tedious, is really required for those favoring such securities. Thanks for posting.
    Dec 2, 2014. 01:10 PM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Good to hear from you Tim. Thanks for reading and posting!
    Dec 2, 2014. 01:03 PM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Good points W; there is something for everyone at SA which is why the platform has been so successful. Thanks for posting.
    Dec 2, 2014. 01:02 PM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Sounds like you have crafted a nice portfolio customized to your resources, goals and risk tolerance. Nicely done! Thanks for posting.
    Dec 2, 2014. 01:00 PM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Thanks very much. You are correct, all of my preferred stock research is original research. You can see my SA articles since Oct 2011 here:

    http://bit.ly/16IV5oQ
    Dec 2, 2014. 12:57 PM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Good point John. There are many very solid but unrated REIT preferreds available. Thanks for your comment.
    Dec 2, 2014. 12:55 PM | Likes Like |Link to Comment
  • Are Lower Tax Preferred Stock Dividends Really A Better Deal? [View article]
    Glad you enjoyed it. Thanks for taking the time to read and comment.
    Dec 2, 2014. 12:54 PM | Likes Like |Link to Comment
  • Preferred Stock Market Snapshot: Investment Grade Preferred Stocks Available Below $25 [View article]
    The article is intended to provide readers with a sense of what today's preferred stock marketplace has to offer, using a graphical depiction along with some examples, and some commentary regarding how things have changed throughout the year, the reasons why and some current drivers (retail sales, oil).

    As you point out and as noted in the article for HSEA and MHO-A, today's buyers will realize a cap loss in the event of a future call since both of these issues are trading above their $25 par values. But what if that call does not happen? Both of these securities have been callable for one and one-half years now and no call. If the companies were in a position to redeem these securities, why haven't they?

    In the case of MHO-A, the cap loss in the event of a call would be $0.47 which is about one quarter's worth of dividend. Some investors are willing to take that kind of risk for the 9.57 current yield being provided by this security.

    I'm not saying that buying above par is a smart thing to do (in fact, the article specifically says that these are just examples for each quadrant and not in any way to be taken as recommendations). But obviously, given the large number of diamonds seen above the $25 market price in the first chart, plenty of investors are willing to pay above par every day.

    The article's title refers to the 71 investment grade securities that are seen in the green (lower-left) quadrant of the first chart, referred to as the "sweet spot" in the article (investment grade, below $25). See the "Count" column in the table under that chart.

    Thanks for posting!
    Oct 27, 2014. 06:22 PM | Likes Like |Link to Comment
  • Preferred Stock Market Snapshot: Investment Grade Preferred Stocks Available Below $25 [View article]
    Without a doubt, GDP securities represent a higher level of risk than most are willing to consider and the recently oil price plunge makes them even more so. Thanks for posting.
    Oct 27, 2014. 01:24 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers - Be Sure You're Watching The Right Indicator [View article]
    I'm not sure what evidence you would consider useful but if ratings from other subscribers and readers has any value, you can see how others have rated my CDx3 Notification Service back to 2007 here:

    http://bit.ly/1C6U36p

    Also, 77 reader reviews at Amazon rate my book, Preferred Stock Investing, Fifth Edition, 4.5 out of 5 stars, making Preferred Stock Investing one of the highest reader-rated books in the United States.

    But if ratings from others are not of interest, documented investing results might be more meaningful to you.

    Annual results since 2001 of the preferred stock investing method described in Preferred Stock Investing are provided in a chart on the back cover of the book. See the back cover at Amazon here:

    http://amzn.to/Hv4YhA

    Further, chapter 17 of Preferred Stock Investing lists the investing results, using the method described in the book, for each qualifying preferred stock that has been issued since January 2001.

    Beyond how others rate my CDx3 Notification Service and research and documented investing results, having an understanding of the specific value that I provide to my subscribers might also help. By 'value' I mean the specific features you get for the price you pay.

    The nearest comparable service (based on features offered) has been selling a one year subscription for $495 since 2003. An annual subscription to my CDx3 Notification Service is $175 with more features. Here is the feature list of my CDx3 notification Service to compare to others:

    http://bit.ly/1mUvTa7

    If you do the feature comparison, the value that I provide to my subscribers is pretty easy to see in black and white.

    But if ratings by others, solid investing results and documented value are not important, there is some pretty simple math that should help you make the decision whether or not a subscription to the CDx3 Notification Service is worth the $175.

    The long-term average return of the high quality preferred stocks that I write about is 7 percent per year. If you were to use the CDx3 Notification Service research, database and search engine to buy 100 shares of a 7 percent preferred stock, you would make the $175 subscription fee back. If you do not feel that you could use our tools and research to make $175 in dividend income over a year's time, preferred stock investing may not be something you should pursue.

    All of the evidence I point to here (and much more) has been available for several years. I hope you get a chance to look at it.
    Sep 22, 2014. 07:41 PM | 2 Likes Like |Link to Comment
  • Preferred Stock Buyers - Be Sure You're Watching The Right Indicator [View article]
    As much as I'd like to, those who have subscribed to my CDx3 Notification Service (who have one-click access to that filter) would probably start to wonder why they had paid the subscription fee. In fairness to my subscribers, there are limits to what I can post here.

    You can see the features of my CDx3 Notification Service (email alerts for new issues, database with preferred stock search engine, monthly newsletter, preferred stock investor discussion group...) here:

    http://bit.ly/1mUvTa7

    Thanks for posting.
    Sep 22, 2014. 06:41 PM | 2 Likes Like |Link to Comment
  • Preferred Stock Buyers - Be Sure You're Watching The Right Indicator [View article]
    Investing below par is always preferable. But if none of the available choices meets your requirements, there are additional high quality issues trading within one dividend's worth of par (i.e. $25.01 - $25.50). Some feel that risking one quarter's worth of $$$ is worth the additional choices that doing so makes available, especially if the issue is call-protected for several years.

    In the below-$25 realm, at the close today there are 9 high quality issues with cumulative 6+% divs and investment grade ratings that are call-protected for another two to four years.

    Thanks for reading and posting.
    Sep 22, 2014. 04:41 PM | Likes Like |Link to Comment
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