Is the market perception of the issuing of 6.5%preferred J's not threatening to D and F preferred shareholders? That these two preferreds will not be called for some time?
The F's, whose share price decreased a small amount today, was still trading at a comfortable premium above par. It had been trading and holding closer to 26 more recently.
I would have thought this would have traded closer to par. Any reason why buyers are willing to pay a premium knowing that the current trading price (25.45), if held for the next div, and called in after the div, will be a net wash in terms of a gain? (div around 47 cents per quarter for the F)?
And why would anyone want to buy the preferred J at a yield of 6.5%, when the common stock has been (and expected to remain) strong and yielding only slighly less than the J preferred?
Replaced my 2000 shares of the soon to be called Preferred D and F with the new HCN-PJ today with 4000 shares. Best fixed income producer that I can see coming out right now. Not much else out there for newly issued preferreds that is as stable as this company.
Couldn't find a way to delete the recently posted message on the preferred J. I just read where the F will be redeemed in April, and the process explains why the preferred is currently trading above par.
I still don't know why someone would find the preferred J more attractive than buying the common at this point.
I also own the regular stock and I'm happy with the 5.50% dividend with an opportunity for capital growth but every morning when I click on Headline news I never know what I will encounter that will effect the price of the stock. Owning the prferred is what I call a newsproof stock-- 6.5% is a nice chunk of change in this economy and with basically no risk.