Published Sun, 19 May 2019 15:56:22 -0400 on Seeking Alpha
This research report was produced by The REIT Forum with assistance from Big Dog Investments.
We’ve found preferred shares provide an excellent opportunity for investors to get a high yield with lower volatility.
We cover preferred shares frequently and today’s pick comes from our latest article for subscribers: Preferred Shares Week 151.
AGNC’s preferred share
For investors interested in The REIT Forum’s preferred share ratings, see my guide to preferred shares. I also have a guide for preferred share dividend captures.
AGNCN (AGNCN) from AGNC Investment Corp. (AGNC) is the headline pick for the week. That might seem pretty strange given the share price at $25.76 includes a pretty large premium to call value.
Source: The REIT Forum
However, these shares still carry a respectable stripped yield, years of call protection, and a floating rate with a large spread when call protection ends.
This is the kind of pick that can confuse some investors. Investors see a lower yield relative to the other preferred shares and a larger premium to call value. That makes shares look like a “poor choice”. Quite to the contrary, this is the environment where AGNCN shines. Despite a premium to call value, the shares perform much better than most in a major panic. That is critical in this environment. We see some minor fear over trade issues, but the broader markets remain extremely close to their record highs. Shares of the largest... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ANNALY CAPITAL MANAGEMENT||8.60||0.0||-3.32||1.20||14.00|
|ISHARES S&P US PREFERRED STOCK INDEX FUND||37.21||0.0||0.00||2.08||5.60|
|VANGUARD HIGH DIVIDEND YIELD ETF||89.75||0.0||0.00||0.00||2.79|
|VANGUARD DIVIDEND APPRECIATION ETF||120.84||0.0||0.00||0.00||1.58|
Older articles featuring Annaly Capital Management (NLY):50 Top U.S. REITs By Gains And Yield Per September 13 Broker Targets
My Dividend Growth Portfolio July Update: 44 Holdings, 3 New, 5 Buys, 3.45% Yield
Two Big Fat Double-Digit Dividend Yields
My Dividend Growth Portfolio July Update: 41 Holdings, 5 Buys, 1 Sell, 1 Covered Call
New Residential: Both The 13% Dividend Common Stock And The 7.5% Preferred Are Buys
Income Investing And The Changing Yield Curve
AGNC Investment's Q2 2019 Income Statement And Earnings Projection - Part 2 (Includes Dividend Sustainability...
My Dividend Growth Portfolio Q2 Update: 41 Holdings, 8 Buys, 8 Sells
2019 Half Year 10% Yield Update; Truth Behind High-Yield Is Revealed
An Exceptionally Steady 6.9% Yield From Annaly Capital Management's Preferred