Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: Heywood40 who wrote (31873)	9/1/2019 10:11:01 PM
From: Steve Felix	2 Recommendations Recommended By geoffrey Wren Heywood40 Respond to of 34328

Quick calc shows I have 29.2% of my portfolio in preferreds. I've been burnt before, so I require the company to be making money, AND pay a dividend on the common. That leaves MTBPC and CSSEP out for me. I owned LTS-A and ARR-B but sold last year when I moved more money to the growth side. I have added the LTS baby bond LTSF. No idea why LTS decided to pay a dividend they are not covering. 1% less, but a lot safer imho.

To: Heywood40 who wrote (31873)	9/2/2019 10:51:32 AM
From: Graustus	1 Recommendation Recommended By Heywood40 Read Replies (1) \| Respond to of 34328

Re: preferreds Heywood, some of the good sources for preferred investing that I use are: Here on Silicon Investor: “(Non-Tech) Income Investing” Also: Innovative Income Investor

To: Heywood40 who wrote (31873)	9/9/2019 12:49:31 PM
From: geoffrey Wren	1 Recommendation Recommended By Heywood40 Respond to of 34328

I too have significant holdings in preferred shares quantomonline.com a very useful site to research. Seeking alpha also sometimes has articles digging into the safety of a preferred issue, I prefer stocks that are trading under par. If you buy something at par it is asymmetrical risk. You can have capital loss, but if things improve the stock gets called, you get no capital gain. Some stocks cannot readily be called, and those are fairly safe to buy over par (such as LXP-C, RPT-D). Also best if common is getting a dividend, and if preferred slice of equity is small portion of capitalization. Also another bias I have is in favor of eREITS over mREITS. The latter can really flame out. RASF has just filed for BK, and it looks like the preferred shares will just be wiped out. But then RASF was run by scoundrels. But then many mREITS and BDC’s are run by scoundrels. EREITS can have troubles too. WHLR preferred dividends now in suspension, but fair likelihood that they will be reinstated there. In the Great Recession many a preferred share traded down to $10 or $5. That was a good time to buy. It goes to show that preferred shares can slide down in PPS to a large extent. Of the three you listed, ARR-B looks the best, but probably a pass for me. Regards,