#HYHRD: Preferred WL w/e 4/9 $ARI $ARR $CHSP $CLNY $CORR $CUBE $GAIN $GLOG $RSO $SSW $TOO $WHLR

I am now screening for and 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 are the screening results and updated activity list of preferred shares for the #HYHRD portfolio;

Screening Watch List Update

This Watch List Update is now issued weekly, usually AMC on Fridays, and/or the last trading day of the week. This is my compilation from this past week. Results of this and past screens can be seen on my blog, under Real Results (click on Preferred Watch List).

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% fixed and cumulative 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 greater than or equal to 2.5%, Cash Flow Growth Rate (5 Yr) Is greater than or equal to 9.5%, Dividend Yield (Annualized) Is greater than or equal to 8%, Interest Coverage Is highest/lowest % in market (Highest 60%), Security Price Is greater than or equal to $10, Volume (90 Day Average) Is greater than or equal to 0.004 (Millions), Coupon Type Is (Fixed), Callable (Yes), Cumulative Dividend Indicator Is (Cumulative).

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 60%), Cash Flow Growth Rate (5 Yr) Is highest/lowest % in market (Highest 40%), Dividend Yield (Annualized) Is highest/lowest % in market (Highest 40%), Interest Coverage Is highest/lowest % in market (Highest 40%), Security Price Is greater than or equal to $10, Volume (90 Day Average) Is greater than or equal to 0.006 (Millions), Coupon Type Is (Fixed), Callable (Yes), Cumulative Dividend Indicator Is (Cumulative).

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 dynamic (changes every week) screen results are shown below;

Here’s the updated ‘pass list’ using the “Preferred Securities (modified)” “Expert Screen”; ari/pa clny/pa clny/pc corr/pa glog/pa rso/pb ssw/pc ssw/pd ssw/pe too/pa

Here’s the updated ‘pass list’ using the “#HYHRDPreferred” screen; ari/pa chsp/pa clny/pa clny/pc cube/pa gaino ssw/pc ssw/pd ssw/pe

UPDATE: 3/20/16 I did some more research combining the screening results from the preferred stock channel website, and then verified against the Fidelity website, and came upon the following conclusion; searching for monthly paying preferreds, cherry-picking a few, and verifying on Fidelity might be a good thing as well as searching for quarterly paying preferreds, cherry-picking a few, and verifying on Fidelity. I look for; Trading price vs. liquidation preference: >5% discount, Current Yield: >8%, Original Coupon: >8%, Dividend frequency: Monthly/Quarterly/Any, Time since latest ex-dividend: 50%) from the results, but those I believe are what are known as “sucker yields”. The end result is that I might look further into one or more preferreds from ARR but I probably won’t look into more expensive issues unless there are very compelling reasons to do so.

* – preferred stock symbols 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

Preferred Activity List Update

  • Purchases (using *only* LIMIT orders!)
    • On 3/4/16, I bought 150 shares of APOLLO COML REAL ESTATE FIN INC 8.625% shares (ARIPRA).
    • On 3/7/16, I bought 122 shares of COLONY CAP INC CONV PFD-C shares (CLNYPRC).
    • On 3/14/16, I bought 150 shares of APOLLO COML REAL ESTATE FIN INC 8.625% shares (ARIPRA).
    • On 3/14/16, I bought 478 shares of COLONY CAP INC CONV PFD-C shares (CLNYPRC).
    • On 3/14/16, I bought 60 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
    • On 3/15/16, I bought 150 shares of COLONY CAP INC CONV PFD-C shares (CLNYPRC).
    • On 3/15/16, I bought 50 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
    • On 3/21/16, I bought 400 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB).
    • On 3/21/16, I bought 90 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
    • On 3/23/16, I bought 300 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB).
    • On 3/23/16, I bought 200 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
    • On 3/24/16, I bought 300 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB).
    • On 3/24/16, I bought 350 shares of COLONY CAP INC CONV PFD-C shares (CLNYPRC).
    • On 3/24/16, I bought 600 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
    • On 3/28/16, I bought 1,000 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB).
    • On 3/28/16, I bought 200 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
    • On 3/29/16, I bought 100 shares of TEEKAY OFFSHORE PARTNERS LP 7.25% 12/31 shares (TOOPRA).
    • On 3/31/16, I bought 275 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB).
  • Dividends (projected by TDM and/or actually received)
    • On 4/15/16, 150 shares of APOLLO COML REAL ESTATE FIN INC 8.625% shares (ARIPRA) paid $80.87 in Roth-A.
    • On 4/15/16, 150 shares of APOLLO COML REAL ESTATE FIN INC 8.625% shares (ARIPRA) paid $80.87 in Roth-P.
    • On 4/15/16, 800 shares of COLONY CAP INC CONV PFD-C shares (CLNYPRC) paid $356.24 in Roth-A.
    • On 4/15/16, 300 shares of COLONY CAP INC CONV PFD-C shares (CLNYPRC) paid $133.59 in Roth-P.
    • On 4/28/16, 500 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB) paid $82.03 in Roth-A.
    • On 4/28/16, 500 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB) paid $82.03 in Roth-P.
    • On 5/2/16, 600 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB) paid $309.38 in Roth-A.
    • On 5/2/16, 600 shares of RESOURCE CAP CORP 8.25% 12/31/2049 PFD shares (RSOPRB) paid $309.38 in Roth-P.
    • On 5/13/16, 100 shares of TEEKAY OFFSHORE PARTNERS LP 7.25% 12/31 shares (TOOPRA) paid $45.31 in Roth-A.
    • On 5/28/16, 500 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB) paid $82.03 in Roth-A.
    • On 5/28/16, 500 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB) paid $82.03 in Roth-P.
    • On 6/28/16, 500 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB) paid $82.03 in Roth-A.
    • On 6/28/16, 500 shares of ARMOUR RESIDENTIAL 7.875% 12/31/2049 PFD shares (ARRPRB) paid $82.03 in Roth-P.

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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