Re: re GST-B
Xot:
You said:
This is portfolio maintenance as i call it. Security upgrading is another name. Even if i effect no trades, returns will be superior in the other issues, assuming a call of GST-B, and whether the other issues are called or not, and assuming par is used as the price at beginning and end. Straight arithmetic.
My calculations show that GST-B has 52 monthly $.2240 dividends to be paid by 11/15/2018 call date. Total dividends $11.65 qualified.
If sell GST-B for $28.66 before STG taxes can buy 1.15 shares LGCYO @ $24.90 paying $.167 monthly dividend. 52 payments until 11/15/2018 would total $9.99. Add another $.10 to bring it to par, say $10.09 total. Ordinary income tax rate.
Ignoring risk, holding GST-B seems to be better choice. And the dividends are possibly qualified, or if not qualified because of ROC issues, then will be taxed at capital gain rates upon sale.
Would I buy GST-B today in my taxable account? Hmmm. A 9.37% YTC and the dividends untaxed in my 15% bracket? OTOH Gustar, Miller, Goodrich etc are very high risk investments, riskier than shippers in my opinion. |
