Preferred Stocks End July Favoring Buyers - Higher Reward For Lower Risk At Sub-$25 Prices

For the first time this year, preferred stock buyers are demanding higher dividend yields in return for taking the same risk. Using Moody's ratings as a proxy for investment risk, the average yield of preferred stocks with Baa3 investment grade ratings ended July at 6.55 percent, an increase of 0.40 percent over the last three months. The average market prices for investment grade preferred stocks are now below $25, favoring buyers. For example, the 40 investment grade preferred stocks at the Baa3 risk level are providing an average yield of 6.55 percent for an average market price of $24.29...

Note To Readers: This article was chosen to appear on the popular investing website 'Seeking Alpha'.

By clicking here a new window/tab will open on your screen to this article as it appears at SeekingAlpha.com.

Receive my Seeking Alpha articles by email: When viewing one of my articles at Seeking Alpha, click on the "Follow" button under my picture. You will be notified by email when I post a new article to Seeking Alpha.

Please enjoy reading this article at Seeking Alpha.

Many Happy Returns.