Are coming closer to - or below - par (most of 'em) again, which got me interested as long-term income holds for QDI.
Then I noticed their Dec AGM is going to hold votes "on the amount of cash patronage and equity redeemed and distributed to owners" which kind of put my interest on temporary hold until this is resolved.
"In the last 15 years, the volume of allocated equity has tripled – and it’s more than five times the equity held in 1999. Allocated equity has grown every year, even during times when CHS had strong earnings and returned a significant amount of cash to CHS owners.
Continuing to manage equity this way will likely mean the CHS equity program has less value to owners over time, since it will likely take decades longer to redeem equity."More @
https://www.chsinc.com/about-chs/owners-and-investors/equitySince I know some here hold and/or like these things, I figured it worth passing along the item as an FYI.
Comments
https://www.chsinc.com/about-chs/news/news/2023/12/12/chs-board-elections
"At the Annual Meeting, CHS members also approved two amendments to the organization’s bylaws.
The first amendment decreases the number of representative directors in Region 1 from four to three directors and increases the number of representative directors in Region 7 from one to two directors.
The second amendment modifies how dividends are treated when calculating the net income or net loss of an allocation unit from patronage business and provides the Board with increased authority to add an additional amount of patronage income, not to exceed 35%, to the capital reserve."
... that last part I'm not too clear on and want to learn more before adding CHS prefs back to my portfolio. Apart from that question mark, a preliminary first-glance of their FY23 data didn't see any major news ref the safety of these once-popular preferreds.