UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next
Author: LONGREITS Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Income Investing: 5.5% goal possible? Date: 6/22/2011 1:32 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
I agree. In fairness, I'd rather have a 7.5-8% pref than a 3% treasury. But, I'd rather have a 2.8-3.8% yielding KO, PEP, KFT, PG, PM, CL at these prices.

Theoretically you can roll short-term treasuries, but it isn't worth it given the paltry yields. I'd rather stay in cash and pounce on an opportunity. The time to buy rock solid preferreds for double digit non-callable returns is when interest rates start going up. Otherwise, you're locked in to something that at some point will be pretty unattractive. PEP and KO won't be unattractive in an inflationary environment. On the contrary.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement