Skip to main content
No. of Recommendations: 0
What is your risk level for this income? Just about anything above bank savings account rates carries increasing risk. To deploy extra cash i puchased PFE, IBM, PPL and WBA. They average about 5% dividends on purchase price and they have appreciated about 10%, but that is where the increasing risk comes in.

Gene
Print the post Back To Top
No. of Recommendations: 9
Work? LOL - Sadly, it does seem like that's the only thing that's paying lately.

There are a couple of mostly busted convertibles that I have purchased in the past: WFC-L and BAC-L Both trade well over their par value of $1000 and their forced conversion of $1300, but with coupon rates of 7.50% and 7.25%, respectively, they still yield over 5%, even at their current prices of $1465 and $1435, respectively.

BAC-L can force conversion with the common at $65, and the common closed at $39.15 yesterday, so I'm not sure you would call that one totally busted, since it requires less than a double until it can be converted, and given that BAC WFC common has to get up to $203.72 to be able to force conversion of WFC-L, and it closed at $43.84 yesterday, so that one is still pretty busted, with almost a 5 bagger required.

I usually don't buy either one of these unless they are closer to the conversion price of $1300, because if interest rates ever go up, I would expect them to head back toward that price. But it's a 5% yield for now, so that's something to consider if you're willing to monitor it.

AJ
Print the post Back To Top
No. of Recommendations: 0
What is your risk level for this income? Just about anything above bank savings account rates carries increasing risk. To deploy extra cash i puchased PFE, IBM, PPL and WBA. They average about 5% dividends on purchase price and they have appreciated about 10%, but that is where the increasing risk comes in.

Gene
Print the post Back To Top
No. of Recommendations: 1
xom, pm, mo,ibm, mmm. Think total return. I think industrial are the best in this revitalized economy, but the yield isn't there. pave would be a decent choice or xli.
Print the post Back To Top
No. of Recommendations: 3
Cross posting from the Jim Royal board....

How about CORR-A?
7.375% Dep Shares Ser A Cumul Red Preferred Stk
https://www.quantumonline.com/search.cfm?tickersymbol=CORR-A...
The price has risen recently, but is still below par at $22.33


I know CORR has not been on your A-List Kingran, but it looks as though the company has made some cash flow stabalizing changes according to the below SeekingAlpha article:

Crimson California Acquisition Benefits CorEnergy Preferred
https://seekingalpha.com/article/4414047-crimson-california-...


-srockaz
Print the post Back To Top
No. of Recommendations: 0
Hello srockaz, Longtime. Jim's post sums up the challenges with CORR. I am setting up a portfolio focused on income. I am looking for 6~7% return and want to stay out of potential issues.
Print the post Back To Top
No. of Recommendations: 3
Take a look at PBI-B & CLNY-J. Neither really exciting, but for me
they work. Both at or under par. I especially like the Pitney Bowes
note that closed at $ 24.29 and has a coupon of 6.7%.
Norm
Print the post Back To Top
No. of Recommendations: 2
Thanks Kingran! It is good to be back!

Here's Jim's post outlining the challenges and an alternative:

https://boards.fool.com/yeah-corr-a-does-have-some-upside-i3...

I have two income providers that I've found to be stable over the last couple years. Maybe they will meet your criteria:

FBIOP - Fortress Biotech, 9.375% Series A Cumulative Perpetual Preferred Shares

TGP-B Teekay LNG Partners L.P., 8.50% Ser B Fixed/Float Cumul Red Perp Preferred Units
I believe TGP is a MLP so K-1's may apply



-srockaz
Print the post Back To Top
No. of Recommendations: 2
Print the post Back To Top
No. of Recommendations: 5
LordXot has a list of preferreds that may be helpful

https://docs.google.com/spreadsheet/ccc?key=0Ai6nAWjRjzKlcHh...

klee12
Print the post Back To Top
No. of Recommendations: 0
TGP-B does issue K-1's
Print the post Back To Top
No. of Recommendations: 1
I own WFC-L. I don't like BAC-L, because it is potentially convertible and if it does then at this price you will lose money. OTOH, I own BAC-N, I traded couple of times, my purchase price is <$24.
Print the post Back To Top