FR-d redemption.
I mistyped. The redemption date for fr-d is 2/04/03, 8 months from now, not 5/14/02. The rest of my yield calculation/speculation is correct as typed.
(The redemption date of 5/14/02 was for the fr-b which were called in by the company. They announced that call-in on 4/11, if my notes are correct. They did not waste any time in redeeming those shares, you'll notice.)
I limited my search for suitable preferreds to those with higher yields than the sometimes available 6% +/-. I found a few in the 8-9% range and some in the 10% area. My investigation is pretty basic -- I look at the common stock and do the usual sniffing around -- EPS, dividend coverage, insider activity, press releases, sometimes I check S&P or moody's rating, etc. Of course, I don't care how overpriced or underpriced their common shares are -- or maybe I do -- if they are underpriced, I'd better see some insider buying, if overpriced, then the insider selling is accepted as a sign of intelligence and common sense. And I calculate the ROI based on the redemption of the shares and based on no redemption. Of course, I need to understand and have confidence in their business in general. I like real estate more than oil for example. And I like apartments over retail malls. And I like REITs because they have a huge common dividend that they can cut in order to make the preferred dividend payment, if cash got tight. Banks and others might be OK, but I haven't found many high yields there. If anyone has any better method, lemme know.
A few of my preferred preferred holdings are -- clp-c, ddr-c, nnn-a, cwn-a.
I haven't gone thru the whole list yet, and so I would appreciate a note if anyone finds any nice yields which look well protected. And I haven't found a screener which will do preferred shares.
the listing of preferred shares --
quantumonline.com
Exchange traded debt securities might also have some nice yields.
grommit |
