The YIELD was only 7.5% if you purchased the shares @ $25 which was the original price! At the current price right now of $26.65 (11:06AM on 1/4/12) the yield is 6.98%. It will next be paid when the dividend is declared, most likely around 2/22/12, and paid out around 3/12/12 . . . remember these shares are now being traded on the secondary market . . . you are not an original purchaser! So the price is whatever the market will bear!
The above site contains the prospectus for the notes.
Interest paid quarterly I think they are due in 2023.
They have been callable since 2008 @ $25 par value.
That the reason I sold F-PA when it was $6.75 and put the money in GABUX. I had own it since 2003 but why would Ford want to keep it when you know that they can get cheaper money. I know that the dividend is good and I took a chance back in Nov. 19 of 2008 and bought some at $4.26 on the 19th and then it fell to $3.35 on the 26. I bought some more but I can tell you I was worried. General Motors and Chrysler was going broke and doing away with their stock. But they haven't ask for any money so I stuck with them. Then the first of Dec. it turn around and I bought some more at $5.50. After that I let it ride to last week and when I seen it go up to $6.75 I said that it been a good run but I was going to sell and put it in something else. I couldn't see losing $1.75 on a share in case it was call. Who know they may not call it and I did wrong buying GABUX. They been paying 7 cent a month since 2001 and you only pay taxes on 1.4% of the dividend if I understand it right. May be someone on here that know more about it than I do could look at it.
This issue has been callable since 2008 at 25/share. Given that Ford issued 10 yr paper in 01/11 for around 5.5%, their not calling this issue now makes no sense to me. If I were them, I'd call this issue and issue bonds paying a lower rate. On top of the break in rates, the bond interest would be deductible, whereas the preferred dividend is not. For all these reasons, I'd not purchase Ford Preferred A. At the current price, you're risking an immediate 5% loss if they decide to call, which they can at any time.
The stock gets paid out in I believe 2023. You can sell it anytime. You are paid .46 quarterly interest per share each 3-9, 6-9, 9-9, and 12-9. Total is $1.875 per year.
Ford has the right to redeem the stock at $25 plus interest at any time since 2008.