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 : Dividend investing for retirement
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
Graustus
To: Graustus who wrote (31058)4/10/2019 1:24:43 AM
From: maverick611 Recommendation   of 34328
 
You are correct in the scenario you spell out.

I have bought a couple illiquid preferred issues well over par. They were long past their call date when I bought them but the companies seem to have no desire to redeem them. I have since pocketed enough dividends to make up the premium I paid and then some. I am happy top sit and collect over 6% from these for however long I can.

That said, on other preferreds, I typically time my buys when they are under par or possibly just slightly over depending on the issue unless there is a good reason to pay more.

Some people get too hung up on the $25 par price. I look at multiple factors, price, dividend rate, first potential call date, likelihood of a call, safety of the dividend, etc
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