My Biggest High Yielders Are Finally On Sale

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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