With the 10-year Treasury bond currently trading at an all-time low of 1.4%, preferred shares are looking very attractive for high-dividend investors. Some preferred shares are even more attractive than others because they have a "failure to redeem" covenant, and will result in a high penalty rate if the shares were not redeemed at the stated maturity of the preferred shares. In effect, this acts like a soft maturity because it can force the issuing company to redeem the shares in order to avoid a penalty or a higher dividend payout. In such cases the preferred shares look more like "bonds with a stated maturity" rather than securities with a perpetual maturity.
One such share is the preferred C share of Tsakos Energy Navigation - ticker symbol TNP-PC. Tsakos Energy Navigation (NYSE: TNP) provides international seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services to national, major, and other independent oil companies and refiners under long, medium, and short-term charters. TNP-PC is a safe 9% yielder - covered 6 times by TNP's earnings. This special preferred share also comes with a "failure-to-redeem" clause - making this preferred share issue similar to a bond with a fixed maturity (bond-like risk). If the preferred shares are not called by the year 2020, the dividend yield will escalate at an astronomical level and will reach 25%.
Source: Seeking Alpha
Related Articles:
- 7 High-Rated Dividend Stocks With Above Target Returns
- 4 Dividend Stocks For Healthy and Wealthy Retirement
- 4 High-Yielding Utilities With A Growing Dividends
- 9 Dividend Stocks With A 10%+ Dividend Growth Rate
- 3 Styles Of Successful Dividend Investing
Top 13 Reasons To Invest In This Safe Preferred Stock - Yield 9%
Posted by D4L | Wednesday, August 03, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.