#HYHRD: Preferreds of $ARI $CHSP $CLNY $CUBE $ESS $MHLD $NNN $O $PEB $RNR $TOO

I am now investing in Preferred Securities (Symbols are different almost everywhere you look, but the underlying and the description(s) should help you figure out which one(s) might warrant some further DD on the platform of your choice).

Following is an activity list and screening results of preferred shares for the #HYHRD portfolio;

  • Purchases (using *only* LIMIT orders!)
    • On 3/4/16, I bought 150 shares of APOLLO COML REAL ESTATE FIN INC 8.625% 12/31/2049 PFD shares (ARIPRA).
    • On 3/7/16, I bought 122 shares of COLONY CAP INC CONV PFD-C CALLABLE NEXT CALL 04/13/20 @ 25.000 shares (CLNYPRC).
  • Dividends (projected and/or received)
    • On 4/15/16, 150 shares of APOLLO COML REAL ESTATE FIN INC 8.625% 12/31/2049 PFD shares (ARIPRA) paid $??.??.
    • On 4/15/16, 122 shares of COLONY CAP INC CONV PFD-C CALLABLE NEXT CALL 04/13/20 @ 25.000 shares (CLNYPRC) paid $??.??.

Screening Watch List Update

This Watch List Update is now issued weekly, usually on Fridays, and/or the last trading day of the week. This is my compilation from this past week.

Hindsight can be 20/20, foresight not so much.

My expectations for the #HYHRD (High Yield High Return Dividend) Preferred Portfolio:

I target a minimum 6% dividend yield.

I can’t always hit that, but that’s my target.

Sometimes I hit my target, too; some I exceed by a little, and some by a lot.

Lot’s to do, so let’s get to it.

Last Week’s screening watch list updates;

I *try* to screen the morning before the market opens each day, and then compile the results and post by the end of the trading week.

I mainly use FREE stock screeners on fidelity.com (you need to register to save your screens, but it’s worth it, IMHO).

Preferred Stock Screens

The “Preferred Securities (modified)” screen from the “Expert” screens section on fidelity.com that I have modified; This screen looks for; Revenue Growth (TTM vs. Prior TTM) Is greather than or equal to 2.5%, Cash Flow Growth Rate (5 Yr) Is greather than or equal to 9.5%, Dividend Yield (Annualized) Is greather than or equal to 8%, Interest Coverage Is highest/lowest % in market (Highest 40%), Security Price Is greather than or equal to $10, Volume (90 Day Average) Is greather than or equal to 0.004 (Millions).

The “#HYHRDPreferred” screen that I have ‘tweaked’ a bit from the “Expert” screens section on fidelity.com (I like this one best). I look for; Revenue Growth (TTM vs. Prior TTM) Is highest/lowest % in market (Highest 20%), Cash Flow Growth Rate (5 Yr) Is highest/lowest % in market (Highest 20%), Dividend Yield (Annualized) Is highest/lowest % in market (Highest 40%), Interest Coverage Is highest/lowest % in market (Highest 40%), Security Price Is greather than or equal to $10, Volume (90 Day Average) Is greather than or equal to 0.0063 (Millions).

I also use the Preferred Stock Screener from the Preferred Stock Channel. I look for Current Annualized Yield: >6%, Cumulative?: Yes, and Underlying Common Shares are in Dividend Channel’s S.A.F.E. List: Yes.

There’s other criteria that I use, and that further limits the number of stocks that will pass each screen. I believe that all of this criteria, when considered together, yields ‘higher quality’ results.

I also get tips from fellow traders on StockTwits and even from articles written for Seeking Alpha, and some of those tips are quite good. Some are notoriously bad, though, so I still need to due my own own DD (That’s Due Diligence, for the n00bz!). Of course, if a stock looks bad on first pass and has never passed any of my screens, my scrutiny is a bit on the tough side, and some tips are dismissed out of hand. Still, though, some tips do make it through. YMMV!

I used the following Preferred screens this past week, and the static (data remains from prior weeks, new data is added) screen results are shown below;

Here’s the updated ‘pass list’ using the “#HYHRDPreferred” screen; ari/pa chsp/pa clny/pa clny/pc cube/pa peb/pa peb/pb

Here’s the updated ‘pass list’ using the “Preferred Securities (modified)” “Expert Screen”; ari/pa clny/pa clny/pb clny/pc mh/pa

Here’s the updated ‘pass list’ using the Preferred Stock Screener from the Preferred Stock Channel; ess.prh nnn.prd o.prf rnr.prc too.pra too.prb

* – preferred stocks are not included in the subject of the post, but I have included the underlying stock symbol
* – preferred stock symbols vary depending on your platform

About PandA Trader

I am, I think... "Disobedience, in the eyes of anyone who has read history, is man's original virtue. It is through disobedience and rebellion that progress has been made." -- Oscar Wilde
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