tobiasjo Reinvestment Risk Reinvestment risk is the risk that when your term preferred stocks or your bonds mature that you will not be able to reinvest that money at similar or better yields because interest rates have fallen. This will result in the decline of your future income. At our service, we offer a recommended…
DNY59 Introduction I’ve previously published articles here on Seeking Alpha, covering the Virtus InfraCap US Preferred Stock ETF (NYSEARCA:PFFA). Since the last article was published in January 2024, PFFA was up smartly riding the expectation that the Federal Reserve would begin an aggressive interest rate reduction campaign as early as March. Over the last couple…
PM Images Medallion Financial (NASDAQ:MFIN) is a niche bank that has successfully pivoted away from lending to taxicab drivers. Today, the bank manages deposits and lends them out for recreational and home improvement loans. Recently, I came across the bank’s 8% fix to floating preferred share (NASDAQ:MBNKP). After reviewing the financials, I believe the fixed…
undefined Introduction As Dynagas LNG Partners (NYSE:DLNG) hasn’t paid a dividend on its common shares since 2019, I have been focusing on the preferred shares. One of the two series of preferred shares recently moved from a fixed rate to a floating rate preferred dividend. As the preferred dividends remain very well-covered and as the…
undefined/iStock via Getty Images Introduction At the end of 2023, Seapeak owned an “average” 21 LNG carriers and 21 NGL carriers on a consolidated basis throughout the year. I was mainly interested in the LNG vessels as the sole reason to have a long position in Teekay LNG Partners. I also owned the preferred shares…
JamesBrey Back on December 23, 2022, we purchased a large position in Brookfield Infrastructure Partners’ (NYSE:BIP)(NYSE:BIPC) preferred units (NYSE:BIP.PR.A) at a price of $16.63 per unit. However, we recently sold our position at $18.70 per unit, locking in a nice 22.1% total return (17.3% annualized) including distributions and in this article, we detail why. BIP/BIPC…
gorodenkoff Introduction Recently, I have covered numerous banks and the preferred stocks they have issued. Financial institutions are the major source of preferred stocks since they can, for the most part, count them as part of the Tier 1 capital requirements. That said, finding an issue that allows investors to diversify away from bank issues…
kodda/iStock via Getty Images Enbridge is a solid infrastructure play I expect a significant upside over the next six months for Canadian-dollars-denominated Enbridge Series R (TSX:ENB.PR.T:CA) and US-dollars-denominated Series 5 (TSX:ENB.PF.V:CA) (OTCPK:EBGEF). One of the largest global infrastructure companies, Enbridge’s business consists of four major segments: Liquids Pipelines, Gas Transmission & Midstream, Gas Distribution and…
Wicki58/iStock via Getty Images Introduction UMH Properties (UMH) focuses on owning and operating manufactured home communities. As of the end of last year, UMH owned and operated 135 manufactured home communities with a total of almost 26,000 developed homesites in several US states. UMH Investor Relations In a previous article, which was published in January…
fotostorm Thesis Global Partners (GLP) is a U.S. Master Limited Partnership (‘MLP’) which functions as an owner, supplier and operator of gasoline stations and convenience stores. The MLP has seen its common shares rocket upwards in the past year, on the back of better than expected profitability and expansion plans: Data by YCharts As an…
NanoStockk/iStock via Getty Images Introduction Eagle Point Income (NYSE:EIC) is an investment company focusing on CLO debt, and as explained in a previous article, Steven Bavaria is an authority on this sector and I would strongly recommend you to read some of his older articles. This October 2022 article is perhaps 18 months old, but…
CharlieChesvick Investment Case For the next 6 months, Series 2 preferred shares of Northland Power Inc. (TSX:NPI.PR.B:CA) seem to provide a better return on investment than the company’s common shares (TSX:NPI:CA). Northland’s common shares are better suited as a longer-term investment, as the company’s valuation heavily relies on the increase in EBITDA and Cash Flow…
JHVEPhoto/iStock Editorial via Getty Images Introduction As it has been almost a full year since I last discussed the preferred shares of Summit Hotel Properties (NYSE:INN), the recently reported full-year results are an excellent reason to have another look at the REIT and the safety of its preferred shares. INN Investor Relations As you can…
Spencer Platt/Getty Images News Introduction Bank of America (NYSE:BAC) is one of the largest financial institutions in the United States, and this banking giant with worldwide presence likely doesn’t need a lengthy introduction. While the common shares are well covered here on Seeking Alpha by a myriad of authors, I have been keeping an eye…
Bloomberg/Bloomberg via Getty Images Introduction Based on the read count and comments connected to my recent articles reviewing preferred stocks issued by banks, I searched for bank preferred stocks not covered yet. I found two issued by Bank of America (NYSE:BAC) that lacked covered on Seeking Alpha. They are: Bank of America Corporation 5% NCUM…
Bilanol/iStock via Getty Images Introduction I have owned the preferred shares of Sunstone Hotel Investors (NYSE:SHO) for several years now as I think the (cumulative) preferred dividends offer an excellent stream of quarterly dividends that I don’t have to worry about thanks to the robust balance sheet of the REIT. Data by YCharts The recently…
ymgerman Introduction From what I can tell, Citigroup has only three listed “preferreds” still outstanding after calling many of the others since 2000. One is a standard Preferred Stock, the Citigroup Inc. DEP SHS 1/1000 J (C.PR.J). The other is a debenture known as Trust Preferred stock: Citigroup Capital XIII – FXDFR PFS REDEEM 30/10/2040…
Steve Satushek/The Image Bank via Getty Images NGL Third Quarter Update: NGL Energy Partners (NGL) reported earnings last night (Feb 8th). They had already given a look at Q3 numbers before the recent bond issues and loan refinancings so numbers weren’t a huge surprise on the whole. Adjusted EBITDA came in at $151.7 million versus…
Sezeryadigar How to get a dividend from Charter Few investors know that they can actually reap a dividend from Charter (CHTR), although not in a standard, straightforward manner. Charter’s largest shareholder, Liberty Broadband (LBRDK) (LBRDA) (OTCQB:LBRDB) has a small amount of Preferred stock outstanding (NASDAQ:LBRDP), with par value of $25 and an annual yield on…
champc New offering summaries: CDX3Investor.com Eagle Point Credit Company (ECC), a closed-end externally managed investment company, priced an offering of 1.4 million shares of new series F term preferred stock due 2029, offering a fixed dividend of 8%, paid monthly. The new shares received a credit rating of BBB from Egan-Jones Ratings Company, and traded…
cholwanich/iStock via Getty Images In our last coverage of iShares Preferred and Income Securities ETF (NASDAQ:PFF) over two years back, we highlighted that the fund was destined to give you relatively poor returns for the risk. With both asset classes that drive preferred share valuations remaining insanely expensive, caution is the name of the game….
Tim Allen Prologis, Inc. (NYSE:PLD), formed in 1997 and headquartered in San Francisco, CA, is currently the largest REIT by market capitalization and focuses on the ownership, development, and management of logistics facilities located in 19 countries across four continents. The company’s operating performance, along with its solvency profile and widely diversified portfolio makes the…
Mario Tama Thesis Citi (C) reported earnings on January 12, 2024, that beat EPS estimates, but trailed revenue expectations. Citi is a mammoth organization spanning the globe, and while it took some impairment charges around its Russia and Argentina businesses, its Tier 1 capital ratio stands at a very healthy 13.3%: Q4 2023 Results (Citi)…
jamesteohart About seven months ago, I rated the preferred stock of Telephone and Data Systems (NYSE:TDS.PR.V) as a “hold”, as the stock was offering an exceptionally high dividend yield of 13.0% but it also had some material risks. Since my article, the stock has offered a total return of 38% and thus it has outperformed…
Andrii Dodonov Introduction Eagle Point Income (NYSE:EIC) is an investment company focusing on the BB tranches of CLO debt. And just like in my previous article, I’d like to refer you to Steven Bavaria’s articles which often provide excellent reads as he is very capable in explaining CLO tranches and the implications in layman’s terms….
Michael M. Santiago Introduction Although virtually all preferred shares issued by financial institutions are non-cumulative in nature, I still keep a close eye on some of the fixed rate issues. Despite the preferred dividends being non-cumulative, I still think they could be an interesting addition to my portfolio as long as the underlying bank is…
Sean Gallup Introduction When Höegh LNG Partners was still trading, I decided against buying the common units, but instead initiated a long position in the preferred shares. Other authors here on Seeking Alpha provided excellent coverage of how the Höegh LNG delisting story. At the end of 2022, the new owners of Höegh LNG Partners…
Mongkol Onnuan/iStock via Getty Images VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) is a fund designed to give investors a diverse pool of preferred stock in various companies and sectors. Preferred shares typically have appeal as a higher-yielding income source than bonds or common stocks, while also enjoying the tax treatment of dividends instead of…
Supertruper REITs have made a comeback in recent weeks, as fears around a ‘higher for longer’ interest rate environment have subsided. It pays, however, to remain cautious, as the recovery may still be too early to tell. Perhaps that’s why higher risk segments like hotels and office properties remain priced well below where they were…
PixelsEffect Ashford Hospitality Trust, Inc. (NYSE:AHT) was nearly killed by COVID. Massive equity dilution was used to keep the company alive. AHT lost 99% of its value over the last 5 years as the shares were diluted and reverse split. The negative impact of Covid on travel has faded. U.S. airline travel records were set…
AscentXmedia On our last coverage of Brookfield Renewable Partners L.P. (NYSE:BEP)(NYSE:BEPC), we suggested that BEP was the superior choice relative to NextEra Energy Partners, LP (NEP) and investors would do well to look to it versus NEP in trying to seek yield. If you want to chase the 12-15% distribution growth dream, we really cannot…
Douglas Rissing Introduction While I’m not a big fan of non-cumulative preferred shares, some issues have features that are sufficiently interesting to consider adding them to my portfolio anyway. In a previous article, I discussed the “busted” preferred shares issued by Wells Fargo (WFC), and in this article, I’d like to have a closer look…
YANG WANG/iStock via Getty Images Earlier this year (June 2023), I wrote an article on City Office REIT (CIO) and City Office REIT, Inc. RED PFD SER A (CIO.PA) recommending avoiding the common equity exposure and instead highlighting the value potential that lies within the preferred shares. Ycharts Since then CIO’s stock has experienced a…
Monty Rakusen Do you hold any preferreds in your income portfolio? Preferreds usually have much better dividend coverage than common shares, and often have much higher dividend yields. Such is the case with the FTAI Reset Rate Cumulative Series C Preferred shares (NASDAQ:FTAIN), which yields ~8.7%, vs. just ~2.3% for the FTAI Aviation Ltd. (FTAI)…
tadamichi Written by Nick Ackerman, co-produced by Stanford Chemist. Cohen & Steers (CNS) is a smaller asset manager that’s generally focused on real estate investing. They offer several closed-end funds specifically focused on that area of the market as well. However, they also generally carry exposure to preferred investments as well. Even their more popular…
HeliRy Most income-oriented investors have been caught off-guard by the surge of inflation in the last two years, as inflation had remained suppressed for the past 15 years. High inflation erodes the real annual return of portfolios and their real value. Therefore, investors should do their best to protect the real value of their portfolios…
Kirpal Kooner When it comes to residential REITs, one prospect that investors should not pass up looking into is Mid-America Apartment Communities (NYSE:MAA). As its name suggests, the company focuses on acquiring and renting out apartments. Given the large percentage of Americans who rent instead of own, and because of the rising cost of home…
Matthew Nichols/iStock Editorial via Getty Images Introduction Wells Fargo & Company (NYSE:WFC) is a well-known name in the U.S. banking landscape where it is considered a top-5 player in the financial services industry. Although the U.S. banking sector has faced some headwinds recently, the sector’s financial performance has held up better than I expected, and…
energyy Telephone and Data Systems Preferred Shares (TDS.PR.U) currently offer a better combination of yield and upside potential compared to its ordinary shares, being the best way to play the potential sale of its stake in UScellular Corp (USM). Business Overview Telephone and Data Systems (TDS) operates in the telecommunications industry, providing wireless products and…
zhengzaishuru Battalion Oil (NYSE:BATL) secured another $55 million in preferred equity commitments, allowing it to resume development activities. It has started drilling two Monument Draw wells, which are expected to come online in early 2024 and is also looking at additional locations. The additional preferred equity funds should also allow it to keep up with…
William_Potter Co-authored with “Hidden Opportunities” Amidst rising interest rates, we have been recommending at least 40% allocation to fixed-income securities, and this can be achieved through bond funds, preferred stocks, and baby bonds. These can be much safer investments than stocks, and offer solid preferred income with lower price volatility than stocks. With these instruments,…
Dragon Claws ETF Overview The VanEck Agribusiness ETF (NYSEARCA:MOO) seeks to replicate the price and yield performance of the MVIS Global Agribusiness Index, which is intended to track the overall performance of companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, from farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and…
Sundry Photography U.S. Bancorp (NYSE:USB) is one of the largest banks in the United States. Like many in its industry, the bank has a variety of preferred shares. Of the six issuances, two of them are paying dividends based on a floating interest rate. The Series A preferred share (NYSE:USB.PR.A) is on pace to pay…
Robert Way Introduction Although the preferred shares issued by banks and financial institutions are traditionally non-cumulative in nature (which means that in case the bank skips a preferred dividend payment, it does not have to make up for it in the future), the perception of a missed preferred dividend payment is so negative that I…
Michael M. Santiago It’s not often that a “too big to fail” bank is offering a security with a dividend yield of 9.5%, but that’s just what happened last week when Citi (NYSE:C) did not call its Series J fixed to floating preferred share (C.PR.J) and allowed the dividend rate to float at a rate…
Lari Bat/iStock via Getty Images Introduction I’m always keeping an eye on fixed income opportunities, and although some of those ideas have a higher risk/reward ratio, the main purpose of the income-focused section of my portfolio is to have exposure to a reliable income stream. While I never wrote about Rexford Industrial Realty (NYSE:REXR), I…
wwing/iStock via Getty Images Introduction Cenovus Energy (NYSE:CVE) (TSX:CVE:CA) is a large integrated oil and gas producer in Canada. The company produced in excess of 700,000 barrels of oil-equivalent per day while its downstream throughput averaged in excess of half a million barrels per day. The total capacity is quite a bit higher but some…
Darren415 In this article, we take another look at the Cohen & Steers Limited Duration Preferred and Income Fund (LDP). The fund has recently released its shareholder report and we take this opportunity to update our analysis. LDP trades at a 9.2% current yield and an 11% discount. Quick Snapshot LDP has a fairly typical…
Elijah-Lovkoff/iStock via Getty Images Introduction KKR Real Estate Finance Trust (NYSE:KREF) originates and invests in transitional senior loans backed by real estate. While I never really cared for the common shares of the REIT, I was interested in its sole issue of preferred shares, which are traded with (NYSE:KREF.PR.A) as the ticker symbol. Despite keeping…
shih-wei I outlined a seasonal investing idea on the JPMorgan Nasdaq Equity Premium Income Fund (NASDAQ:JEPQ) in early August. My thesis rested upon the usual pattern of declining stock prices in the often-volatile months of August and September, with an eventual early Q4 low in equities before a year-end rally. So far, that outlook has…