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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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5 Preferred Stocks for High Income and Safety |
Seeking Alpha - May 15, 2011 - By Eric Parnell
This post is a follow up to Preferred Stock ETFs: Beware the Heavy Concentration in Financials, which is the latest in an ongoing series first introduced in the article Best Post-QE2 Opportunities Lie Beyond Stocks providing a detailed analysis on investment strategies outside of the stock market leading up to the end of QE2.
In my recent post on preferred stocks ETFs, I discussed how these products have a heavy concentration in the financial sector ranging from 80% to 90% of the entire portfolio. And recognizing the fact that the preferred stock market lost 65% of its value at the depths of the financial crisis before gradually recovering their value, I also indicated that risk averse investors may be interested in considering the additional step of dissecting the preferred universe and selecting individual stock offerings that still provide high income while also providing a greater level of portfolio protection against the potential of another financial episode.
This article presents five individual preferred stocks that may be of interest to income-oriented investors that would also like to protect against the potential for a major loss of principal value for an extended period of time. All of these preferred stock offerings can be purchased on an exchange just like a common stock.
The following is the screening process applied in constructing this group.
First, I focused only on preferred stocks that are non-financials. Given that nearly all financial preferred stocks were liquidated indiscriminately during the 2008 crisis, I am interested in seeking to avoid any exposure to this sector. This is a particular priority at present given the currently mounting sovereign debt instabilities in the euro zone and its potential negative spillover effects on the global financial sector.
My second screen was for quality, including only those preferred stocks that have investment grade credit ratings of BBB/Baa or better.
My third screen was for price stability. This included a focus first on those preferred stocks whose price remained stable during both the QE Pause from April 2010 to August 2010 as well as during the depths of the financial crisis in late 2008 and early 2009. This screen also included preferred stocks from companies whose common stocks held up well during the QE Pause from last summer as outlined in my previous posts QE-Proof Stocks for Summer 2011 and More on QE-Proof Stocks for Summer 2011.
My final screen focused on addressing call risk, including only those preferreds that are not callable until 2012.
For the complete article.
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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