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Industry Discussions / Real Estate Inv. Trusts: REITs


Subject:  Re: Preferreds Date:  3/18/2019  12:00 PM
Author:  srockaz Number:  84567 of 86785

Hi Bill!

My experiences rhyme with the comments above. My opinion is that if the coupon yield is below 8%, it won't get called/redeemed UNLESS interest rates start declining again. Which is unlikely in the 'short term', however long that is to you.

Are you looking for a place to hold your cash with a 'high' return (> treasuries, etc.)?

If you choose to use preferred stocks for that keep in mind they tend to be less liquid than common stocks. Which means you will have to spread your money over multiple companies in order to sell them quickly when you want your money out. And there is the risk of the price declining beforehand.

I recommend not buying anything you don't mind holding for longer than your 'short term' just in case.

Good luck and please let us know what you come up with so we can all learn a little bit more!

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