Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: Tomorrow AIG is calling their 7.7% preferred shares (AVF) @ $25.00. I purchased (AVF) on 10/16/09 @ $14.61 which gave me an effective yield of 13.14%, and appreciation of 71.12%. Oh well, it was nice while it lasted. I'm using the proceed to buy some 2018 GMAC Smart notes (Ally) at 7.4%. Regards, Ted
How are preferred shares bought? I have regular AIG stock and am considering buying some preferred stock. I noticed you listed owning PFF in the thread: Portfolios-Your top 3 holdings. Do you always hold preferred shares? I have never owned any preferred shares and would like to know why you would choose to own them.
Preferred shares are bought the same as regular shares (they have their own symbol), although *some* may not be highly liquid. Preferred stock is higher up the ladder than common, and has preference in terms of dividends paid (must be paid before common shareholders) and in the event of liquidation has preference over common.
Thanks Scott! I will look over the information you listed. I already own AIG stock and it is up 40% since I bought it last fall. I also own AIG it in my Fairholme Funds. I might try PFF in my Roth IRA.
Reply to @Brightorange: In addition to the list of preferred stocks that Scott linked from the WSJ, here is another excellent source of information on preferred shares, Quantum Online.Com Regards, Ted http://www.quantumonline.com/QuickStart.cfm
Reply to @Brightorange: In addition to the list of preferred stocks that Scott linked from the WSJ, here is another excellent source of information on preferred shares, Quantum Online.Com Regards, Ted http://www.quantumonline.com/QuickStart.cfm
Comments
How are preferred shares bought? I have regular AIG stock and am considering buying some preferred stock. I noticed you listed owning PFF in the thread: Portfolios-Your top 3 holdings. Do you always hold preferred shares? I have never owned any preferred shares and would like to know why you would choose to own them.
Broad overview of preferred stock:
http://en.wikipedia.org/wiki/Preferred_stock
List of Preferred stocks:
http://online.wsj.com/mdc/public/page/2_3024-Preferreds.html
Bold move...AIG was left for dead in 2009:
M&M
Regards,
Ted
http://www.quantumonline.com/QuickStart.cfm
Regards,
Ted
http://www.quantumonline.com/QuickStart.cfm
I haven't looked into preferred stocks, or ETFs before and you have given me good resources to start with.