Monday, August 18, 2014

Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks

Like the name says, Apartment Investment and Management Company, also known as AIMCO, owns and operates apartment complexes throughout the United States. AIMCO has several initiatives underway to reduce its $4+ billion debt load including the issuance of preferred stock. Using two issues, about $123 million of debt was converted into equity during Q2. The 6.7 percent current yield being offered by AIV-A and AIV-Z is consistent with other B+ rated preferred stocks available in today's preferred stock marketplace.

For preferred stock investors, the cumulative dividends of AIV-A and AIV-Z, along with their competitive current yields, call protection and potential for a rating upgrade will have to be weighed against...

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