MHLD - Preferred Stock On 'Fire Sale' 9% Yield And Upside From National General
Co-produced with PendragonY for High Dividend Opportunities.
Summary
Insurance companies have fairly predictable cash inflows. They also tend to be recession-resistant. National General (NGHC) is a nicely profitable insurance company that has done well. Even with close to $60 million in claims due to California wildfires and hurricanes, it has remained very profitable.
Concerns over these natural disasters have pushed down the prices of its preferred issues and its baby bond. With the Q4 report these concerns have been addressed, and so the preferred issues and baby bond are trading at a