Monday, February 4, 2013

New Preferred Stock From Public Storage Illustrates Trade-Off Between Risk And Reward

Posted by Doug K. Le Du, Author of Preferred Stock Investing at 2:34 PM
Public Storage introduced a new traditional preferred stock on January 8 that is now trading under the symbol PSA-W. Boasting a Moody's A3 rating, the new security offers a 5.200% annual dividend to investors. Even at the lofty A3 rating, the market is signaling that they have an even higher opinion of Public Storage preferred stocks. At the close on January 31, the market priced PSA-W at $25.15 which translates to a yield of 5.170% - consistent with a Moody's Aa3 rating in today's market, two notches up the investment grade scale from A3.

This new preferred stock started trading on the wholesale Over-The-Counter stock exchange on January 9 under the temporary OTC trading symbol PSAXL for an opening price of $24.87. PSAWL transferred to the NYSE on January 16 as PSA-W. On January 31 PSA-W closed at $25.15...

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