Probably will sound a bit 'odd', but I hope it drops another buck...and yields 9.5%...as I'm adding to this particular preferred right now - next 'deposit' in mid-August, when the divys pile up. (have other preferreds - this is just the latest one)...The preferreds can go up or down in price, but the cash flows remain the same, so I'm just not all that concerned about "price"...I really treat the investments like I would a bond or CD...(we baby boomers are gonna need 'cash flow' supplements...pretty hard to find decent yields right now)
Well, at the current price, the A preferred yields 9.07%...fixed payout, every month...Also subject to the lower dividend tax rate (non reit)...and selling quite a bit below par ($25), so also has some upside potential along with the current dividend. But "to each his/her own"...I like them within my IRA account, and just continue to push the dividends into more preferreds, for the nominal, fixed cash flows....I care NOT, what the price does...
pretty much like 'dar' said... & It's just darned hard to find any decent yield (which baby boomers are gonna want...cash flow!...so, some will get bid over $25...esp if maturity date is far off...but they never seem to expire them on time, anyway)...I did like 'aristocrat' stocks with their divvy growth rates, etc...but common stocks are too darned high for me right now (but that's just me). So, I do have many preferred stocks now....I have lots of NRF preferred shares and some RSO preferreds...so, I'm now banging away at the new LTS-A preferred...9.06%...non-reit, so taxed at the lower divvy tax rate...pays out monthly, so a bit of fun....just spreading the money around, whenever I get the divys piling up, in my IRA.
(I DID GET 25 CENTS in interest THIS MONTH, on my $31k sitting in a CHASE saving's acct !!...but that's "quick, get-out-of-town" under the mattress, money)
Well, I did read an article that it's taxed at the lower, 'dividend tax' rate...as it's a non-REIT...As for any 'return of capital' stuff, I did try to check awhile back, but never found anything on that - but I just keep all my preferreds within an IRA, so I don't tend to pay much attn. to the tax consequences right now. So, that's about all I know, from one article I read.
I will say that the E is still being sold into the market...new issuance....and has heavy volume. So, that's probably the main reason the E remains a bit depressed...and the yield a bit higher than the other NRF preferreds...The same has been true of LTS-A...That company is selling the 'A' preferred into the market to raise cash...to reduce their debt. So, I feel that one is also a good candidate for purchase...i.e....I like them depressed now - higher yields (full disclosure: I did opt for some LTS-A today at 22.23 = 9%). Yes, if rates rise, the fixed income preferreds can wilt, on 'price'...but I don't mind...I just add more whenever I can, for the CASH FLOWS, within my tax deferred IRA...So, take em' lower...jack up the yield !)
Oh heck, I'll take that today...but yeah, if rates do rise (and they may), then the 'price' of the preferred stock can pull back more...and yeah, I'll buy more...just keep cost averaging it, as my dividends roll in, from other preferreds I own...For me, it's ONLY about CASH FLOW (nominal)...I don't plan on selling the preferreds I own, so I pay no attn. to the "price"...(IF THE PRICE DROPS, RAISING THE YIELD...FINE WITH ME)To each, his/her own (way of investing)...oh, I do have them within an IRA.
FOR ME...It's ALL about CASH FLOW...'price' can go where it wants to go...the cash flow remains FIXED....and if the price drops, fine...ADD MORE...get even more CASH FLOW...(which many of those 79 million baby boomers need, given the lousy yields on saving's accts / CD's / Treasuries / etc...!! )
FINE WITH ME...PUSH IT DOWN / RAISE THE YIELD. I've been thru this with other preferreds I owned in the past...like AHT-D...that got wildly out of kilter with their other preferreds...I just buy more preferreds quarterly, as my dividends pile up...Right now, I'll go with more LTS-A...or maybe some new NRF-E series...if they push new supply onto the market, on that one (but do not own it yet...have the C/D)...My next "dividend pile" will be in mid-August...and right now, I'd push it into either the LTS-A or maybe the new NRF-E. Just keep PLOWING THE DIVYS BACK IN...NO QUESTIONS ASKED !...Lower prices and higher yields...IS A GIFT...A GIFT.
ps...I just saw a Forbes article stating that the x date on the preferreds is 5/9 ...I thought it was 5/8 , so I went into Fidelity - they say it's the 8th...So, someone's got it wrong...zzzz...So, MAYBE IT IS THE 9TH...and why I did not see the usual pre-x date pullback? Whatever...it'll be what it'll be....does it matter...no. (by the 15th, I'll have accumulated my next divys for the quarter...and decide where to put that. I just keep 'plowing' the divys back in, every quarter (RSO has been such a "dog", pricewise, but I did get a tad today...very small amt....14.7% yield...scary...whatever)
HAVE A GOOD EVENING
I think it would depend on the 'expiration dates', perhaps...i.e. the A&B have passed their expiry dates...but the C&D have a long time to go - I'd assume they'd either honor the 'maturity dates (of the C&D)...or, pay the interest up to those dates, in a lump sum...doubtful. I did read that many times, an acquiring company just continues to honor the preferreds & chooses not to expire them. But since it now looks like there will be no takeover, it may be a mute point.
Actually, today, I was a bit surprised not to see a slump in the share prices of the preferreds, just before they go x divy...I think that's "a first"...they just stayed strong, going into day's end...I still have to think that their are many seniors looking for high yield fixed (payouts) income...for the cash flows.