FTAI Aviation Preferred: 12% Floating Rate Soon

(10min)

Summary

  • FTAI Aviation's 8.25% Fix/Float Series A Cumulative Preferred Shares offer strong dividend coverage, with a potential yield over 12% and a 13.37x coverage factor.
  • FTAI's asset base includes 53.4% aircraft and 47% aircraft engines, with high utilization rates and a focus on narrowbody assets.
  • Despite a one-time $300M restructuring expense, FTAI expects significant annual savings and strong future EBITDA growth, bolstered by recent acquisitions.
  • FTAIP's floating dividend rate, tied to SOFR, provides a robust yield cushion. It's a speculative buy up to $25.50.
Female aircraft engineers inspecting landing gear on large jet

Monty Rakusen

Looking for a high yield preferred stock investment with strong dividend coverage?

The FTAI Aviation Ltd 8.25% Fix/Float Series A Cumulative Preferred Share (FTAIP), from FTAI Aviation Ltd. (NASDAQ:FTAI), should fit the bill, with over 13X preferred dividend

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This article was written by

40.26K Followers

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 FTAIP 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.

Disclaimer: This article was written for informational purposes only, and is not intended as personal investment advice. Please practice due diligence before investing in any investment vehicle mentioned in this article.

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