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Author: JoKingMe 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 77724  
Subject: Poll: Which PLD preferred to own? Date: 2/9/2013 2:24 PM
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Yoda mentioned PLD preferreds in the prior thread and I'm wondering which one(s) I would want to own. All go ex-div on 3/18. As Yoda mentioned the volumes on these are very low and market prices may vary greatly from last trade. Numbers are based on last trade.

There are 6 callable preferreds:
PLD-O $1.75/year $25.50 yields 6.86%
PLD-P $1.712/year $25.17 yields 6.80%
PLD-M (R and S) $1.6875/year $25.23-$25.28 yields ~6.68%
PLD-L $1.625 $25.05 yields 6.49%. (Noticed that bid is $25.09).

Seems to me that I'd rather own "P" rather than "O" as PLD would likely call the "O" shares first. Also, the "O" shares trade at a $.24 premium to par plus accrued dividend and "P" trades at $.09 discount to par plus accrued dividends. This $.33 difference is 8 years of dividend differential. The long term return of the "P" shares are better than the "O". JMVHO.

PLD-M(R an S) trade very close to par, have two other preferreds that PLD would call before them and still yield 6.68%. Certainly not bad for the widows and orphan accounts.

PLD-L. Yields 6.49% and is trading at a $.20 discount to par plus accrued dividends. Likely last one to be called by PLD.

OK, time to choose.
I'm choosing the "P" shares.

Thanks to all that play along.
John
PLD-O. I'll take the highest yielder and risk the call loss.
PLD-P. Better yield to expected call than "O". 6.8% pretty desirable.
PLD-M (R or S). 6.68% Nice balance between yield and call risk.
PLD-L. 6.49% trading at slight discount. Great call protection.
I PLD in my pants.

Click here to see results so far.

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