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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (42694)5/17/2011 3:30:13 PM
From: E_K_S  Read Replies (1) of 78567
 
Hi Grommit -

I would love to get 8% on the DFTpA but at Par ($25/share) they yield 7.875%. I need to be able to buy around $24.50/share to capture that 8% yield.

DuPont Fabros Technology, 7.875% Series A Cumul Redeem Perp Preferred Stock
Ticker Symbol: DFT-A CUSIP: 26613Q205 Exchange: NYSE

They also have a Preferred D which yields 7.7% at current prices.

DuPont Fabros Technology, 7.625% Series B Cumul Redeem Perp Preferred Stock

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It's on my watch list for an add at $24.50/share or lower. For now, I am buying the MHRpD 8% which yields 8.16% at current prices. They also make their distributions monthly rather than quarterly.

These preferrds are much better than my Credit Union yield of 1% or even my Vanguard GNMA yield of around 4%.

The risk is a bit more as these preferreds have a B-/Ba3 rating (MHR is no rated) but Free Flow Cash appears to more than cover the interest obligations for both MHR & DFT.

EKS
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