That's sorta my view on the reit preferreds I hold (NRF-C at 8.7% yield, NRF-D, RSO-B, etc)...They say as rates rise, these instruments fall in price - but that just pushes up their yields even more...And I have no plans on trading them, churning them or selling them....I just hold em' for the fixed amount cash flows & REINVEST the dividends, within my IRA...I think having them within an IRA is the key - tax deferred, compounding the dividends, increasing the cash flows. I'll take 8.7% tax deferred within an IRA over some stinkin' "Benny depressed" 10-yr at 2.6% any darned day.
i agree another point down at most so what. it will come back the fundamentals of the company have not changed. if interest rates did not go up we would be 16.50 at least. just hold on. even if it takes a year. what are you going to do? buy something else with the money and maybe lose on that one also? put it under the mattress. You lose there also. Hold on longs we will be back just like always.
This one is definitely an education. There are two choices, sell for the loss or hold till the dividends eliminate the loss. At that point you can sell and use the paper loss against a gain and save the tax dollars.