Yesterday we had 11 income issues go ex-dividend and I thought that might skew the average share price a bit–but in this market of yield hungry investors the ‘markdown’ of those 11 issues wasn’t enough to stop the move higher in prices.
Today with 47 issues going ex-dividend I am fairly certain the average price will stop going higher–for a day or two anyway.
Yesterday the average of all $25 issues moved 2 cents higher–although we did see the banking sector drop by 6 cents-the only sector to fall.
Some of the Gabelli/GAMCO preferreds are trading close to par. I’m not sure if that means they are a bargain right now or not.
I’ve put in a bid on GGN-B for lack of finding anything I like better out there (that isn’t Canadian).
Yes Jacob–I see a number of the low coupon issues (5%) issues trading around 25. I guess whether that is a good price depends on whether you want just a super safe income stream. We all know these will go lower if interest rates rise–so guess it depends on your outlook. I love these issues, but would like to see them a bit lower.
Is that a fund???? Iam referring to the Gabelli/Gamco.
Gabelli/GAMCO are funds that issue preferred stock.
I don’t really want to buy these low yielders but my Money Market is at 1.25% right now.
If my bid doesn’t get taken I am fine with that.
Chuck–Gabelli is a family of closed end funds (CEFs). CEFs offer the highest quality of all preferreds because they are required to have 2 times asset coverage of senior securities (debt and preferred stock). Since the various Gabelli Funds invest in stocks their performance is observable. A list of the CEF preferreds can be found here–
https://innovativeincomeinvestor.com/preferred-stocks-of-closed-end-funds/
Thank You Tim, actually I thought that was the case. I only buy individual names. Been doing that now for around 20 years and its worked quite well for me. Only been stung twice in those 20+ years.
Chuck P–let’s hope your good fortune continues for another 20 years.
The right hand axis is current yield, correct?
Also, is there some way to make the chart bigger when viewing? Clicking on it doesn’t seem to do anything.
Landlord–right hand is 10 year treasury close. Actually I upsized it a bit–will do some more.
See if the new post is helpful. I will do some research on getting something to enlarge.