PFF - Preferred Stocks And Baby Bonds: January Review
This article was originally published January 11, 2019.
Yield Hunting screens the individual preferred stock space monthly and analyzes three different buckets of preferreds:
- Investment grade
- High yield
- Qualified dividends
Investment grade: We look for preferreds that are trading below (to slightly above) par with investment grade credit ratings and current yields above (or near) 6%.
High yield: We look for BB-rated securities or non-rated securities that yield in excess of 7%. We avoided many of the mortgage REIT preferreds, energy preferreds, and shipping preferreds. We just don't see the return for the amount