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New Preferred Stock IPOs, January 2019

Feb. 04, 2019 7:00 AM ETCFG, CIM, CIM.PD, ENR, ENR.PA, JPM5 Comments


  • Four new preferred stocks were introduced during January, offering an average annual dividend of 7.0 percent.
  • There are currently 126 high quality preferred stocks selling for an average price of $24.43 per share (investment grade, cumulative dividends).
  • 65 of these high-quality issues are now selling below their $25 par value, offering an average current yield of 5.7 percent.
  • U.S.-traded preferred stocks are now returning an average current yield of 6.9 percent.

Preferred stock prices ticked back up throughout January, but are still just below these securities' $25 par value offering an opportunity for buyers.

Remember that the par value is what shareholders will receive in cash should the issuing company decide to redeem your shares. So buying shares below par sets you up for a downstream capital gain on top of the regular dividend income provided by these securities.

January’s new issues

January’s four new preferred stocks are offering an average annual dividend (coupon) of 7.0 percent, an average current yield (which does not consider reinvested dividends or capital gain/loss) of 6.8 percent and an average Yield-To-Call (which does consider reinvested dividends and capital gain/loss) of 6.4 percent (using January 31 prices).

Note that I am using IPO date here, rather than the date on which retail trading started. The IPO date is the date that the security’s underwriters purchased the new shares from the issuing company.

A special note regarding preferred stock trading symbols: Annoyingly, unlike common stock trading symbols, the format used by exchanges, brokers and other online quoting services for preferred stock symbols is not standardized. For example, the Series A preferred stock from Public Storage is “PSA-A” at TD Ameritrade (AMTD), Google Finance and several others but this same security is “PSA.PR.A” at E*Trade and “PSA.PA” at Seeking Alpha. For a cross-reference table of how preferred stock symbols are denoted by sixteen popular brokers and other online quoting services, see “Preferred Stock Trading Symbol Cross-Reference Table.”

There are currently 126 high quality preferred stocks selling for an average price of $24.43 (January 31), offering an average current yield of 5.7 percent. And 65 of these high-quality issues are selling below their $25 par value, also offering an average current yield of 5.7 percent. By high quality I mean preferreds offering the characteristics that most

This article was written by

Whether you are the kind of investor who sticks with preferred stocks with a CDx3 Compliance Score rated 10 out of 10, or whether your portfolio has room for 9-score-and-lower securities, stay tuned for future articles recapping new IPOs and interesting preferred stock activity that we notice here at the CDx3 Notification Service.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

The CDx3 Notification Service is my preferred stock email alert and research newsletter service and includes the database of all preferred stocks and Exchange-Traded Debt securities used for this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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