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Author: Reitnut Big red star, 1000 posts 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 81385  
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."

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