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Doug K. Le Du  

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  • Alexandria Real Estate Preferred Stock Buyers Earning Twice The Return Of Common Shares [View article]
    As I mention in this article, the common is up about 16% over the last 12 months. If you think that value growth is sustainable, then you are absolutely correct - the common is the better play.

    Thanks for posting.
    Aug 3, 2015. 02:08 PM | 1 Like Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    Yes. The list you are referring to is one of several one-click "hotlists" that are available to those subscribing to my preferred stock newsletter and research service (called the "CDx3 Notification Service").

    You can read more about it here:
    http://bit.ly/SrRbNO

    Thanks for reading.
    Jul 4, 2015. 02:13 PM | Likes Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    The tax break offered by Qualified Dividend Income securities is a great perk, but be careful to do the math. Most often, preferreds that are QDI-designated also offer a slightly lower coupon to begin with, so the tax break is often eliminated by the lower income you receive (good news, meet bad news).

    See "Are Lower Tax Preferred Stock Dividends Really A Better Deal?" for comparison charts and data here:

    http://seekingalpha.co...

    Thanks for posting.
    Jul 1, 2015. 04:36 PM | 2 Likes Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    As the table under the first chart illustrates, falling prices will continue to deliver an increasing number of candidates into your wheelhouse.

    Thanks for posting.
    Jul 1, 2015. 12:44 PM | Likes Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    You might be waiting (and giving up the income while you do so) for quite a while. Even during the crisis years, the average price for high quality preferreds dipped to about $18. At the lowest point, trust preferreds (TRUPS) issued by BofA, Citi and a few other big banks fall all the way to about $10 for a few weeks, then recovered once TARP kicked in.

    While knowing what the future holds for these securities is well beyond the edge of my clairvoyance, waiting for prices to fall below $12.50 could be quite a wait...but who knows...
    Thanks for reading and posting.
    Jul 1, 2015. 12:42 PM | 3 Likes Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    Glad to hear that you have found my preferred stock research helpful. Remember that applying value investing strategies to an income investment can frequently lead to an undesired result. Persistent inflation would, presumably, be accompanied by persistently increasing interest rates, which, in turn, would put downward pressure on the market prices of fixed-return securities (bonds, preferreds). If you are using such securities hoping to realize a downstream capital gain (ala value investing), you have to pay closer attention to price movement. But for long-term income investors, price changes are less relevant since income investors generally have no intention of ever selling, regardless of price movements (chump avoidance).

    Thanks again.
    Jul 1, 2015. 12:39 PM | 1 Like Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    How one investor defines "safe" can vary entirely from that of another investor, so it's a hard question to answer. Use the information provided by SA on this company (search for common symbol AGO), SEC filings and press reports to determine if the risk here is consistent with your personal risk tolerance, goals and resources. Thanks for reading and posting.
    Jul 1, 2015. 12:31 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    Using the preferred stock search engine on my subscriber's web site, I added cumulative dividends to your criteria (call-protected for at least 2 years, 6.5%+ current yield) and limited the list to securities trading below their par values. I get 49 candidates as a result, most of which are unrated (but I know you perform your own due diligence regardless).

    I see several mortgage REITs, upstream oil produces and Greek shipping companies in this group. Going slightly above par opens the field considerably. As to how many are trash, one man's trash may be another man's opportunity...:-).

    By the way, you can see an example screen shot of my search engine here (20 parameters):

    http://bit.ly/WmIIts

    Good to hear from you Bruce.
    Jun 1, 2015. 04:48 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    Why would you wait to sell until prices are lower? When prices fall, income investors buy higher yielding shares for bargain prices. Be very careful when trying to apply value investing principals/strategies to an income investment.

    Thanks for posting.
    Jun 1, 2015. 03:07 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    I've never been a fan of preferred stock ETFs for several reasons. For example, if you subscribe to the notion that an investor's objectives for their investment, and a fund manager's objectives for managing the fund, should be consistent, then you would never invest in a preferred stock ETF.

    Commonly, the objective of a preferred stock investor is reliable, stable income. The objective of a preferred stock ETF manager, on the other hand, is to buy and sell positions within the fund such that the market price of the fund mimics the movement of an index. Those are two completely unrelated and entirely inconsistent objectives.

    There are several other reasons described in an article titled "Preferred Stock ETFs: The Downside That Preferred Stock Investors Can Avoid" from a while back that are just as true today as they were then.

    http://seekingalpha.co...

    Thanks for posting.
    Jun 1, 2015. 03:06 PM | 4 Likes Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    It sounds like you are using a strategy that relies on selling shares as they get cheaper, rather than buying. Applying value investing principals/strategies to an income investment can often produce an undesired and/or unexpected result. In any case, thanks very much for taking the time to read and post.
    Jun 1, 2015. 12:40 PM | 2 Likes Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    Good to hear from you again MB. Thanks for posting.
    Jun 1, 2015. 12:37 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    Good point. Thanks for reading.
    Jun 1, 2015. 12:36 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices [View article]
    Glad you enjoyed the article. Thanks for commenting.
    Jun 1, 2015. 12:36 PM | 1 Like Like |Link to Comment
  • Preferred Stock Market Q1/2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    From the paragraph describing CTY under the second chart: "...CTY, presented here in green font, is an Exchange Traded Debt Security (ETD). ETDs are very similar to preferred stocks and are often labeled as such, but they are actually bonds that trade on the stock exchange..."

    Thanks for posting.
    Apr 7, 2015. 11:38 AM | Likes Like |Link to Comment
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