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
-
At times like this, it is tempting to jump on a bandwagon and buy up the growth stocks, aiming to capitalize on the broader trends. But is t...
-
Looking back on the year, it has been quite remarkable. The coronavirus has wreaked havoc on people's health and caused governments to i...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Three high dividend stocks to buy now feature a business development company (BDC), a national real estate investment trust (REIT) and the o...
-
This past year has been the ultimate stress test for dividend stocks. Some companies failed miserably as they either slashed or suspended th...
-
To find these best dividend stocks for their portfolio, investors must look beyond the main performance metrics when conducting their stock ...
-
Dividend stocks are a great choice for investors looking for a regular income stream. The best dividend stocks offer a growing payout in add...
-
The best dividend stocks can generate excellent long-term returns. Even better, investors can buy high-quality dividend stocks when they are...
-
Rather than subject themselves to this risk, savvy investors can stabilize their portfolios by taking positions in reliable dividend growth ...
-
Dividend growth stocks can make for the best investments. The best ones are sometimes companies that might not pay the highest yields, but h...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.