SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (33580)5/5/2010 4:34:58 PM
From: Paul Senior  Read Replies (1) of 78748
 
GOV/PFD. GOV's current yield is 6%. I'd say it's pretty safe given that it's federal or state (commonwealth) entities that lease their buildings. At current stock price, that yield isn't going to increase so quickly though (imo): it'll take time for GOV to deploy all the funds it can draw down to buy and prep and lease new buildings. So I suspect the stock will at best be stagnant for a while because I see the distribution only increasing slowly. And while 6% isn't bad at all, it doesn't seem at this point that it's high enough to pull more buyers into the stock to propel the stock higher.

Regarding current yield, I just suspect I can do as well or better with as much safety, elsewhere. I've closed out my GOV position today.

Fwiw, today in this account I averaged up my position in PFD. This fund uses leverage to pump up the distribution. They've been able to increase their use of leverage. (They apparently have - or maybe haven't -g- - learned their lesson about the pitfalls of leverage.) Increased leverage has led to an increased distribution. Annualized, it would be 12x.0825 = $.99 on an 11.88 stock price, or 8.3%. PFD is oriented to bank and utilities. Here's a list of their holdings from their website.

preferredincome.com

For me, looking to park some money for a while, I find PFD more attractive than GOV. Jmo, of course.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News