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10 thoughts on “Added to Position on This Utility Preferred”

    1. Nice. I see the borrow fee on it is about 15% right now. I have some shares at IBKR but none are being lent out right now, although IBKR does it on a prorata basis between everyone who was the shares verses how many they have lent out.

    2. Last month was the highest payout I have gotten for my borrowed shares. It was at least double the normal monthly amount. Not sure why. I do not get a lot of details over at Ally. I will happily take it and buy more shares of something.

      1. I believe market makers may short them as a hedge against rising interest rates. I had some of the Blackrock defined maturity bond ETF’s, and I was actually making more off the borrow fees than I was getting from the dividends.

        1. porcupine I checked into it today and I didn’t even have to check to see which ones I could loan, the one I wanted to they offered to loan right off the bat.

    3. I thought borrowed shares income is treated as ordinary vs. qualified on dividends. Is this correct? Jason, help please.

      1. Yes, that is my understanding. Fidelity has an adjustment they make to help make up for some of the difference. I forget what it is though.

        I am getting about $75-100 a month in loan fees from loaning out issues I hold. That covers my internet and streaming bills.

        1. Scott, they said it’s a 50/50 split on what they do on loaned shares and my cut is 330.00

  1. Have you looked into KIM-N? It still looks like a relative bargain at today’s prices. It has an ex-date coming up on 3/28 as well.

    1. Bought it in the 2020 crash for $32 & change, paying 11.2%- wish I had loaded up- no call, no maturity.

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