I have to keep the buying going every week with the number of issues being redeemed as well as some pruning I am doing on over valued issues.
Monday I bought the Compass Diversified 7.25% fixed rate preferred (CODI-A)--this one is on my watch list and had been bumping along in the $25.20 – $25.35 area. The issue goes ex-dividend around 7/14/2021 (about 5 weeks). I paid $25.36 for a full position yesterday and am expecting it to march to the $25.75 or $25.80 area prior to ex. I am looking for 1 1/2% or 2% out of this one–not a buy and hold for me. I may sell before the ex date or may hold right through the ex-dividend–just depends on the price action.
This morning I bought a full position of the new Public Storage 4.00% perpetual. I hate buying it–but if I can squeeze 1-2% out of it in the next month I will be happy.
Both of these buys are simply to deploy some dry powder on a short term basis–I leave my base positions in tact long term, while moving dry powder in and out of the markets.
Like most of you I hit new portfolio highs almost daily, but only through some trading can I make that happen–not the way I would prefer, but whatever works I guess in this low coupon environment.
If I recall CODI-A issues a K-1
According to QOL, CODI files a partnership return and therefore issues a K-1. So their preferreds should all be K-1 (barring them doing something unusual). I don’t own any of them, so I have no personal experience with them.
For now that is true—but the company has announced they are exploring conversion to a C-corp.
FYI, CODI-A is non-cum while CODI-B/C are cumulative.
Landlord–for me the cum/noncum is pretty much a non factor–mostly in light of my intent to be out next month.