This is off-topic, but not sure where else to post (if anyone has an idea let me know)-
I want to invest in something other than high-risk, low appreciation stocks or funds, and the media gurus say that corporate preferreds are the way to go. BUT, I can't seem to find any ETFs, CEFs, or other stocks or funds that invest solely in those (other than a few that are greatly overweighted IMHO in financial bonds such as BAC, GMAC, etc. and I don't want to go there.)
What I would be specifically interested in are funds that invest JUST in corporate preferreds such as Ford, IBM, Intel, etc....i.e. blue chip preferred stock.
Does anyone know of anything out there? TIA!
check this out- I bought $4K worth at 6.35 thinking I'd buy more on a pullback but it's only gone down a few pennies on a few days since,I went thru all their holdings, on their site, 6.5% yield paid monthly.($22 on $4K) see what you think.
You have to hold a yr though, or pay penalty 10% I think it is.
shur! let me go raid my quarter jar haha. I would like to see one without financial exposure to the extent pff etc. have, i was looking for one a few months ago actually. so if you get that 10 mill, let me know
F-A is exchange traded DEBT, not a preferred share. F-S is one of the preferred shares.
Doubt we will see 3% 3 month LIBOR anytime soon. At 4.3% current yield, the MET-A does provide an attractive yield but there are less volatile short term bond yields out there that are competitive.
The big unknown is how much will the risk trade hurt the prices of these vehicles which are at near term highs right now.
By the way, watch out for some of the third party preferreds held by financials - many will be called soon to help their tier capital ratios.
May be you'll find something you like here:
Or these may be:
GL - or wait for CIM to go down a bit... the quarter has just began.
Thanks, folks, for al of your ideas so far. I genuinely appreciate it!
IMHO, REITS and banks are in the same category (financial based). While I don't have anything against either one, I have much of my portfolio in REITS already so I am looking to diversify, but I also am looking for yield with the protection of diversification within the fund (i.e., not looking to buy one company's preferred stock, but a basket of them). The only one I have found upon extensive research is DVY, and I may invest in it, but surely there are others out there!!
I don't mind having a few financials within the fund, but prefer any exposure to be less than 20%.
Have a look at NLY, ANH or PSA's preferred stock. These pay over 8% and are very safe. Example PSA-PS, NLY-PA and ANH-PA all pay 8% or more.
Don't assume that a big name, blue-chip is any safer than these. They're not. Nevertheless, Ford (F-PA) pays 7%, and WFC, JPM, BAC have several series paying between 6% and 8%.
You can check out the preferred stocks in the below link. You should of course follow up and do some research in anything before you put your money into them.
And really, I don't think financial preferred stock etf's would be all that bad, yields are pretty good, and since they aren't common stock they should be more stable with a higher return than bonds. imo