Giant ag cooperative CHS today announced earnings for the quarter earnings for the period ending 11/30/2021.
The company reported blockbuster net earnings of $452 million which was mostly generated from the agricultural division which has benefited greatly from high grain prices.. Energy (refining) contributed $69 million to net income.
CHS (untraded) has numerous quality, yet high yield, preferreds outstanding which can be seen here.
The company press release can be read here.
For those wanting all the detail the 10-Q can be found here.
At first glance the fixed rate preferred seem like prime call candidates as soon as possible with the floating tied to the 3 month libor not very desirable. The good (fixed) ones will be called making you take a big hit on the price you pay right now if called which I bet you is likely while the floaters pay an undesirable amount in just a short time. Those will stay outstanding.
Unless they drop in price my excitement for the opportunity dropped as I read more about them. Either way nice to learn about preferred I never dug into before.
Do these issue K1s?
I see that the div is QDI so I think, no, they do not issue a K1.
I’ve owned for many years and they do not issue those. Dividends are qualified.
No–it is a cooperative–not a partnership