Imperial Petroleum's 8.75% Preferred: 20% Discount, 11% Yield

Summary

  • Imperial Petroleum is a new energy shipping company resulting from a spinoff. It began trading in December 2022.
  • Its Series A 8.75% Preferred, IMPPP, is selling at a 20% discount to its current $26.00 call value.
  • The current yield is ~11.3%, with robust 17X net income/dividend coverage.
  • This idea was discussed in more depth with members of my private investing community, Hidden Dividend Stocks Plus. Learn More »
Ship and Oil Platform

nightman1965

With the market betting that Fed rate hikes may end in the second half of 2023, many preferreds and bonds have been selling at higher prices. The idea is that, when rates stop rising, those income vehicles will look more attractive.

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This article was written by

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Robert Hauver, MBA, aka “Double Dividend Stocks” was VP of Finance for an industry-leading corporation for 18 years and has been investing for more than 30 years. He focuses on undercovered and undervalued income vehicles and he leads the investing group Hidden Dividend Stocks Plus.

With Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at a time including links to associated articles, a dividend calendar, weekly research articles, exclusive ideas, and trade alerts. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of IMPPP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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