October’s seven new preferred stocks are offering an average annual dividend (coupon) of 7.0 percent, compared to 6.4 percent from September’s new issues.
Over the past couple of months, the average market price of U.S.-traded preferred stocks fell by $0.95 per share, now sitting at $24.49, creating the best opportunity for preferred stock buyers that we have seen since 2016.
Importantly, note that $24.49 is below these securities’ $25 par value. Remember that the par value is what shareholders will receive in cash should the issuing company decide to redeem your shares, so buying shares below par sets you up for a downstream capital gain on top of the regular dividend income provided by these securities...
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Over the past couple of months, the average market price of U.S.-traded preferred stocks fell by $0.95 per share, now sitting at $24.49, creating the best opportunity for preferred stock buyers that we have seen since 2016.
Importantly, note that $24.49 is below these securities’ $25 par value. Remember that the par value is what shareholders will receive in cash should the issuing company decide to redeem your shares, so buying shares below par sets you up for a downstream capital gain on top of the regular dividend income provided by these securities...
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 by 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.
