Dividends4Life: My Biggest High Yielders Are Finally On Sale

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My Biggest High Yielders Are Finally On Sale

Posted by D4L | Wednesday, February 23, 2022 | | 0 comments »

Looking for solid income opportunities? Several opportunities are developing in the preferred shares. Prices are usually relatively stable and we’re still looking at yields in the 6% to 8% range. Even if shares switched over to floating, they would be carrying yields around 5% today. If short-term rates increase, as implied by the yield curve, it would push those yields up to around 6% also.

Let’s take a look at some of those preferred shares. We’ll start with AGNCO. This is one of my larger allocations, around 3.9%.The spread when floating is 4.99%. That’s not bad for a relatively stable share like AGNCO. These shares have rarely traded above $26.00 for long or below $24.25. Opportunities in the preferred shares are opening up rapidly. We have more bullish preferred share ratings today than we’ve had in a long time.

Source: Seeking Alpha

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