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Post by sidbub on May 14, 2023 15:30:20 GMT
I am looking for a good preferred for income and I am not a yield chaser. If anyone has any suggestions I would be appreciative. An issue that stgill has some time ahead of it and not ready to recall; also a monthly pay. Thank you for your comments.
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Post by yogibearbull on May 14, 2023 15:39:02 GMT
Keep in mind that most preferreds are issued by banks, and they are noncumulative because the banks can count those in the banks' regulatory capital. Of course, there has been a huge selloff in the preferreds due to this regional banking crisis, and the biggest preferreds ETF, PFF is an example. Another point is that preferreds act like bonds of the longest maturities, so they have very high rate sensitivity; it looks like most of the rate hikes are done. stockcharts.com/h-sc/ui?s=PFF&p=D&yr=1&mn=0&dy=0&id=p09411922339 |
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Post by sidbub on May 14, 2023 15:56:22 GMT
Perhaps this is not the time to look into these types of investments considering the current banking issues. I have also looked into J.P. Morgan Nasdaq Equity Premium Income-JEPQ. I liked it but it uses some of the ESG type issues which I am not fond of. Know anything similar without the ESG portfolio?
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Post by johnsmith on May 15, 2023 3:18:58 GMT
I am looking for a good preferred for income and I am not a yield chaser. If anyone has any suggestions I would be appreciative. An issue that stgill has some time ahead of it and not ready to recall; also a monthly pay. Thank you for your comments. LXP C Most preferred are not monthly. I recommend finding 3 preferred that pay in different months. Your capacity to take risk? What if the price falls by 50% but still pays the dividend? |
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Post by rhythmmethod on May 15, 2023 4:07:06 GMT
sidbub , sidbub , yogibearbull , johnsmith , What yogibearbull said. However, if one is forward thinking, these provide possible good opportunity, provided one goes slow and is keeping track of the income. JDO (just drummers opinion). - RM Edit to add - FPF and RNP are my small(ish) plays in this area.
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Post by oldskeet on May 15, 2023 7:44:18 GMT
My preferred position is PFANX and currently sports a nice yield of 7.8%. It makes up about 4% of my hybrid income sleve and is a position that I add to when prices are down. Currently, it is off its 52 week high by about 15% and it pays quarterly. This is an income generating position for me and not one that I look for capital appreciation from.
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Post by richardsok on May 15, 2023 12:29:54 GMT
Sid -- Yours might be a very timely topic, given the established bear market in preferreds that is still driving the ETFs and CEFs downward. Some day (maybe soon) there will be some excellent opptys out there. I generally don't trade individual preferreds, but reserve that portion of my portfolio as buy-and-hold for the income. I look for profitable companies that already pay a fully-earned dividend on its common shares (thus giving me a margin of safety). The company must have good analyst recommendations (6/10 or better on TipRanks). The preferred should be priced under par and should yield 6.5% or better -- otherwise I'd be about as good in a simple CD.
The individual preferreds I own have been purchased recently. Even so, most of them are in the red. They are: ET.E GLP.B GSL.B AGNCM PBR.A MFA.C ABR.D. I may soon buy IIPR.A and/or RITM.B. I generally don't post about preferreds on B/S/W thread, since they're meant to be B&H. I really do like PBR.A but the political risks preclude a really large position.
Unlike individual preferreds, I do actively trade preferred ETFs and CEFs. Given their poor technicals, I don't own any at the moment but am watching FPF, PFF and FLC. As curiosities, I'm also interested in PFFA and even PFFL.
May add to ET.E, which is about as iron-clad as I'm ever about to see (IMO).
My two cents.
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EDIT: Neglected to mention I also own a small new position in FBRT.E (just bought the other day)
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Post by johnsmith on May 15, 2023 14:49:54 GMT
I am looking for a good preferred for income and I am not a yield chaser. If anyone has any suggestions I would be appreciative. An issue that stgill has some time ahead of it and not ready to recall; also a monthly pay. Thank you for your comments.
My short list for how to buy preferreds: - make sure common is getting a dividend - buy below face value (generally) - be prepared to see preferred trade far below par. - BUY with Limit orders (preferreds have low volumes and buying with market orders can be extremely detrimental to your financial health)
These are preferreds I own: - Pretty Safe - LXPpC, EQCpD, (preferred of CEFs are also all very very safe.)
- Middle of the Road - RPTpD, DBRGpH, DBRGpI, DBRGpJ
- Super high risk, don't buy without due diligence - CIOpA
more conversations about preferreds at:
Some Good preferred information sources:
LordXot's Preferred lists:
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Post by uncleharley on May 15, 2023 16:09:46 GMT
Your O P implies you want individual issues so you are probably not interested in a CEF. If you are, RNP has a nice mix of preferreds, bonds, & REITS. It pays monthly at an annual rate of about 9% and is currently selling at a discount to NAV. The weekly chart looks like a nice set-up.
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Post by anitya on May 15, 2023 17:31:05 GMT
Perhaps this is not the time to look into these types of investments considering the current banking issues. I have also looked into J.P. Morgan Nasdaq Equity Premium Income-JEPQ. I liked it but it uses some of the ESG type issues which I am not fond of. Know anything similar without the ESG portfolio? JEPQ is a NASDAQ 100 covered call strategy. I am guessing NASDAQ 100 companies probably score very high on ESG as most of the current hype in ESG is climate related, then social, and then governance. I think it is difficult to be a successful index or passive fund investor by ignoring NASDAQ 100. I have not looked into QYLD but I think that is also a NASDAQ 100 covered call strategy and may not identify itself with ESG - look into it to see if it fits better with your needs. P.S.: I do not own either. |
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Post by johnsmith on May 16, 2023 12:21:25 GMT
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Post by sidbub on May 17, 2023 15:14:35 GMT
Thank you all for your comments. I am looking at RNP as mentioned from undeharley.
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