- AVGOP is the Broadcom, Inc., 8.00% Mandatory Convertible Preferred Stock, Series A Due 9/30/2022. There are two interest payments coming before investors must convert.
- With Broadcom selling for near $560, the AVGOP premium is near 4.9%. Using AVGOP to own AVGO is more costly even after accounting for the higher income AVGOP will provide.
- Since understanding Broadcom is required, a brief overview is provided, plus links to more in-depth analysis by other Seeking Alpha contributors more seasoned on technology stocks.
- Along with cost analysis of buying either AVGO or AVGOP, two option strategy alternatives are reviewed for investors comfortable in trading options.
For further details see:
Broadcom's Convertible Preferreds: 8% Yield Play Until October