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Author: Reitnut Big red star, 1000 posts Top Favorite Fools Feste Award Nominee! Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77472  
Subject: Re: Poll: Which PLD preferred to own? Date: 2/10/2013 9:05 PM
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I don't know where I got that 5.8% yield. Currently, PLDGP is yielding almost 6.7%... that would make me more comfortable owning it.

Jim and Yoda were no doubt referring to the yield to first call, which is always lower than current yield when a bond or pfd is trading at a premium over par value. With so many of these trading over par these days, we really need to look at yields to first call. I think there are probably a few threads on our board that discuss this.

Whether to go with a quality REIT pfd with a YTFC below 6% or a utility with a lower yield but with some modest growth prospects is a Big Issue for many of us these days. There are also some pretty good REITs with current yields of over 4% that may provide better total returns, over time, than REIT pfds with YTFCs in the high 5s. But, of course, they have different risk/reward profiles. As my Dad used to say, "Pick your poison."

Ralph
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