Flipping and Dividend Capture

This quick note is to add a page for discussion for “flipping” issues and for “dividend capture” techniques.

We all discuss these types of things all the time so it is way past time to add a area for discussion for of techniques you use for “flipping” (a quick hold and resale for profit-or occasionally a loss) and for “dividend capture”–buying with the intent to secure a dividend and probably sell shortly there after.

419 thoughts on “Flipping and Dividend Capture”

  1. Nickel stackers with idle cash may want to bird dog some HLM- at $25.24-25 or so today. It goes exD tomm with 24.17 cent interest payment and ultimately is redeemed for cash at $25.0966 come August 12.

    Hillman delivered a notice of redemption for all of its outstanding 11.6% Junior Subordianted Debentures due 2027 (the “Debentures”) on August 12, 2021 (the “Redemption Date”) and the Hillman Group Capital Trust delivered a notice of redemption for all of its issued and outstanding shares of Trust Preferred Securities at a redemption price in cash of $25 per Trust Preferred Security, plus an amount equal to the accrued and unpaid distributions thereon to the Redemption Date. The total amount payable upon redemption will be $25.09666667 per Trust Preferred Security and will be payable August 12, 2021 to holders of record as of August 12, 2021. Hillman is redeeming the Debentures and the Trust Preferred Securities in connection with the consummation of the Merger and such securities will cease to be outstanding as of August 12, 2021. The last day of trading for the Trust Preferred Securities on the New York Stock Exchange (the “NYSE”) will be August 11, 2021

    1. Grid – I lost track of this one mainly because of the monthly pay aspect…. Where are you seeing the x-div date? Is QOL wrong with what they’re saying, “paid monthly on the last day of each month to holders of record on the first business day of each month?” It would seem to me that if they’re right, x-div date for July would have already past, right??? Market pricing would imply you’re right that ex-div for July has not passed.

      1. 2WR, I cant link on phone. Google, HLM- stock price TD Ameritrade. It will pop up a quote page for HLM- and show exD.

          1. As previously announced on July 13, 2021, The Hillman Companies, Inc. (“Hillman” or the “Company”) stated that a cash distribution had been declared by Hillman Group Capital Trust for the month of July in the amount of $0.241666667 for each Trust Preferred Security (NYSE-Amex: HLM_P). As an amendment to the previous announcement, the distribution will be payable August 2, 2021 to holders of record as of July 26, 2021, instead of as of July 23, 2021.

      2. P 120 of prospectus seems to say the same thing re ex-div date: “Distributions on the Trust Preferred Securities will be made to the holders
        thereof as they appear on the books and records of the Trust on the relevant
        record dates, which will be the first business day of the month of the relevant
        distribution payment date.”

        1. Im under impression you get paid twice…The normal interest payment date then the redemption plus accrued for final payment.

  2. Tsakos preferreds;

    I went long the F and D issues. The F is paying this month and the D is next month along with the E. There is still time to buy if there is any interest.

    This company is a dog with fleas, but in a hot industry. A rising tide lifts all boats, but I will most likely get rid of both. I may keep the D a little longer though.

  3. Furcal asked about sources of ex-dividend dates. If anyone is interested here are the issues that I show with ex dates from 7/13 through 7/29. It is NOT a complete list, I am sure some that are going ex are MIA. Also, you absolutely, positively MUST double check the date BEFORE placing any trade counting on the date to be correct. Stated differently, there are likely some errors in the list, although I spot checked many and found them correct.

    CMRE-B 7/13/21
    CMRE-C 7/13/21
    CMRE-D 7/13/21
    CMRE-E 7/13/21
    ARR-C 7/14/21
    BAC-O 7/14/21
    BAC-P 7/14/21
    BEP-A 7/14/21
    BPOPO 7/14/21
    CODI-A 7/14/21
    CODI-B 7/14/21
    CODI-C 7/14/21
    FBPRM 7/14/21
    FBPRN 7/14/21
    GMRE-A 7/14/21
    LTSA 7/14/21
    NREF-A 7/14/21
    NRZ-A 7/14/21
    NRZ-B 7/14/21
    NRZ-C 7/14/21
    SLMNP 7/14/21
    XFLT-A 7/14/21
    FRC-K 7/15/21
    OXLCM 7/15/21
    OXLCP 7/15/21
    UBP-H 7/15/21
    UBP-K 7/15/21
    UELMO 7/15/21
    UEPCN 7/15/21
    UEPCO 7/15/21
    UEPEM 7/15/21
    UEPEN 7/15/21
    UEPEO 7/15/21
    UEPEP 7/15/21
    MSSEL 7/16/21
    PPWLM 7/19/21
    PPWLO 7/19/21
    OCCIO 7/22/21
    OCCIP 7/22/21
    SR-A 7/23/21
    HIG-G 7/29/21
    LXP-C 7/29/21
    MTBCP 7/29/21
    VER-F 7/29/21

    1. Thanks for the list. I sometimes post abbreviated lists of what I think are the best ones I don’t do it often because there didn’t seem to be much interest.

    2. JMPNL and NYCB-U 7/29. And several that haven’t been officially announced yet.
      EFC-A typically mid-month
      SB-C SB-D typically the following week.
      ET-E RMPL- typically end of month. and a few I already purged from my list.

    1. Could I ask what makes you take the risk in owning this pfd stock? While 9% is good, it isn’t if the stock tanks. Do you feel that strongly about the company’s future success. Thanks. (I will occasionally risk a little on a flyer.)

      1. The price has been in a consistent range just below par for years with the exception of the crash last year, which it recovered. So if their prospects were dicey, I would have thought the price would have not recovered to par, where it is now. their financials improved in 2020 over 2019, so I am expecting the dividend to continue to be paid.
        But It is definitely not one of the stronger issuers and only one that I buy and sell at the same price after either capturing the dividend or selling if the price goes up between declaration and ex-date by 1/2 the dividend rate.
        That is the point of this section.. To get the dividend without long term risk.

      2. Dividend capture is about short term price movement. Only major risk is that it tanks during the few days that I hold it. So I bought a smallish amount to hedge the risk. BWSN too, barf, puke.
        The old gridbird special SLMNP also goes ex-div next week. EFC-A which is priced a little high and NREF-A XFLT-A up in nosebleed territory. The following week it’s SB-C and SB-D which may not be much of a capture but I’m holding them anyway for the swaps.

        1. Keep spreading the work on how awful BWSN is. I’m looking for a lower price at which to add.

          1. I can’t do that because I would be “pushing a stock.” or the opposite. Pulling a stock?
            I bought 300 shares and I’ll buy more before Wednesday if the price cooperates. I’m hooked on awful.

  4. Can anyone confirm what’s left to gain on RILYG currently trading around $25.40? I am coming up with $.10 or $25.50. It is scheduled for call on July 26 and will go ex-div 07/15 for $0.453125. I assume it will accrue interest up to the day before the call so another $.05? I already have a good bit but if I buy more there is about a dime to gain here?

      1. Given I’m never wrong (?????) the exact number, Kapil, should be 25.42795. lol. Case confirmed. With RILYG closing today at 25.39, if you use tomorrow as settlement date, that gives you a 2.52% annualized yield on a purchase tomorrow at 25.39

        1. I don’t get it. There is $25 on the call (July 26) plus a full dividend of $.453125 (July 15 record date) plus interest after the dividend and up to a day before the call date. What am I missing?

              1. Record date is a record keeping date only allowing the payor of dividends time in advance of payment to know who’s entitled to get paid the dividend amount….

                1. OK, I think I understand. The interest starts accruing after the last payment date which was April 30 and up to, but excluding the redemption day of July 26. I am glad I asked since my thinking was wrong.

                  1. 35 – When in doubt, the answers can always be found in the original prospectus…. This is pretty much boilerplate in that it hardly ever varies from this way of things being done issue to issue, but the language in the RILYG prospectus sums it up pretty nicely under Description of the Notes, p s-35 – Pay no attention to the language on initial period being from Dec 13 as that, of course is not relevant to now:

                    https://www.sec.gov/Archives/edgar/data/1464790/000161577417007206/s108375_424b5.htm

                    “Interest on the Notes will accrue at an annual rate equal to 7.25% from and including December 13, 2017 to, but excluding, the maturity date or earlier acceleration or redemption and will be payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2018, to the record holders at the close of business on the immediately preceding January 15, April 15, July 15 and October 15, as applicable (whether or not a business day).

                    “The initial interest period for the Notes will be the period from and including December 13, 2017, to, but excluding, January 31, 2018, and subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest payment date or the stated maturity date, as the case may be. The amount of interest payable for any interest period, including interest payable for any partial interest period, will be computed on the basis of a 360-day year comprised of twelve 30-day months. If an interest payment date falls on a non-business day, the applicable interest payment will be made on the next business day and no additional interest will accrue as a result of such delayed payment.”

                    1. After ex-div on 7/14, RILYG went up >0.30 in a week. So, is the holder on the record day will get the July Div or the holder on the last trading day(7/25)? If it will be the owner on record date, why are ppl buying now?

                    2. Falcon – With the actual call being 5 days before payment date, there was market confusion as to whether or not there has been an actual x-div date declared or not. Normally there wouldn’t be. I believe more than one person here has confirmed with IR that there was no ex-div date declared. The market seems to be coming more and more convinced of that and looking forward to collecting 25.428 approx on 7/26.

  5. Anyone notice that odd LBRDP spike? I sold a partial position 500 shares at $28.50 and bought them all back at $28 as this is supposed to be a core hold for me.

    1. Didn’t notice 28.50 but I’ll be glad to sell you some at 28. I have 200 in a taxable account but there’s only so much I can put on my active watch list without going berserk, This one is more of a passive watch.

      1. I just wanted those back, not more, especially at $28, ha. My cost basis was $26.50 ish. Held in tax free account so I didnt need to chase bottom dollar, as I didnt intend to sell to begin with.

  6. I don’t know if any body needs a flipper, but I have been nibblin’ on SRG PRA. It goes ex on 6/29 and has a 7% coupon.

    What I like:
    Under par
    Focus on selling assets and reducing debt
    Cash flow seems decent (CFO)
    Multi use property emphasis
    Got rid of previous management
    Seems to be untangled from the whole Sears leaseback boogie
    Didn’t suspend the preferred dividend in 2020 and steady so far..common not so much

    What I don’t like:
    It’s a REIT and I got too many
    Profits are sucky to light
    E. Lampert is (I believe) a director. Not so sure I have much trust after he stripped Sears to the bone.
    Wouldn’t have had to get rid of old management if old management was decent?
    It doesn’t trade many shares (illiquid) so my nibbles have been sharked by somebody who keeps buying and driving the price up (1,000 shs at a time once a day……Grid? ha ha)

    Bottom line I would rate this “medium-high risk” long term. But for a flipper, probably enough liquidity for the management team to at least pay a few more dividends. If I get “stuck” with it short term it’s still under par with a decent coupon. YMMV

    1. It’s on my watch list of soon to be ex’s (Hey, that sounds like a divorce thing). Not low enough for me to nibble early, though standards change as ex-date approaches. Not a hold, the risk is that I bail out for a small loss. Unless it nosedives before then.

      1. NYMTO is the type of thing I look for. Priced nearly equal to NYMTP when it should be about 30 cents higher. At times there is very large volume on the ask price. These are clues that it may be temporarily underpriced. It’s gone up and I already sold 100 shares though most is still a hold until ex-div. Unless it keeps going up.

        Other examples. AGNCO dropping a little while its brothers have gone up. AFINP only a few cents higher than our old friend AFINO. TWO-C steady while A and C rose a lot. PMT-A a good deal lower than PMT-B but still rather high. All going ex-div in 2 to 4 weeks.

        1. Thank you for the thoughts MG. I’ll take a look see. It’s always good to hear new ideas.

          Best

    2. Another successful flip with the SRG PRA. I was able to scoop up a dividend and squeeze a small gain as well. 😉

      Sold my last of my shares today at $24.71 avg and bought my shares at $24.53 avg.

      I may look to re-enter below $23.85 again, but will depend on other alternatives.

  7. CIM-B goes ex-div tomorrow ans sitting at a nice price compared to other CIM preferreds. Nearly equal to CIM-D when just last week it was 50 cents higher where it belongs because of the higher float.

    1. Thank you Martin…that one netted a very nice steak dinner. Anytime you can make 1.6% in less than 5 business days… that’s a winner. Very much appreciated.

      1. Buy a bottle of wine with dinner and give a toast to this board.
        All of the CIM-s did better than expected. I sold some, kept holding most since it’s still priced favorably compared to the others. This is a good one to trade between issues while also earning 8%.

      2. If you still have any it shot the moon this week, I traded for CIM-D at a 45 cent spread and traded back on a 10-15 cent spread. Been a very good one.

  8. FYI, CIM-B and CIM-D crrently at the same price. B generally runs higher because of the higher floating rate. CIM-C only a little lower despite having a lower yield.

  9. Has anyone ever received an official notice to exchange their SESCF? I am not going to exchange but was going to read what they sent. But I have not received anything from either brokerage.

    1. Grid,
      Just got my “invitation” in Vanguard thru the Corporate Actions tab…never got a message or email that often precede these things..must have showed up in last day or 2 cos wasn’t there at start of week. Below is the “narrative that came with it:

      “Atlas Corp. is offering to exchange up to $80 million principal amount of Seaspan Corp.7.125% notes due 2027 for an equivalent principal amount of new Atlas Corp. 7.125% notes due 2027 (ATCO Notes).

      The ATCO notes will be substantially similar to the Seaspan notes except for the following:
      -The ATCO notes will be the obligations of Atlas, the parent entity of Seaspan
      -After the 2nd anniversary of their date of issuance, the ATCO notes will be redeemable at 100% of principal
      -The ATCO notes are expected to be listed on the Nasdaq Bond Exchange
      -The ATCO notes terms will exclude covenants that govern the primary business activities of Atlas and require certain reporting in the event of cross default

      Notes will be exchanged in minimum denominations of $25 and in multiples of $25 thereafter.

      For the complete terms of the offer, please see the Prospectus (Form 424B3) filed April 7, 2021.
      https://ir.atlascorporation.com/sec-filings

      Note:
      If you exchange your notes through this offer, your notes will not be available to sell or transfer. Any withdrawal requests will be handled on a best efforts basis up until the response deadline. It generally takes 2-3 weeks from the offer deadline for Vanguard to credit the proceeds to your account.

      1. Thanks Adrain, maybe mine will come soon. Vanguard has a nice corporate actions tab but mine werent in that account of course. But at least you made me look and find a “shareholders library” in TD. Got an offer to attend an annual shareholder meeting I dont want to go to. The third brokerage wouldnt send a message if my account was being drained and wired to Nigeria. In fact half my issues are screwed up as they state I dont even own them if I try to sell. But its not worth calling because I continue to receive the dividends from the issues I “dont own”.

          1. Martin, you know incompetence when you see it. They are so bad, I feel sorry for them. But they are super fast getting out IPO tickers and outside of Canadian OTCs, you could buy a dog turd with them if it has a ticker symbol slapped on it.

              1. I like your humor, Bob. But then again you confessed to liking Rodney Dangerfield… “I didnt see a thing……You’re perfect”……

                  1. Never saw Dangerfield either but did go to his club, Dangerfield’s in NYC once and saw Monte Rock III after a Queen concert at MSG… Literally 5 people in the audience including my wife and me yet he performed his heart out,… Monte Rock III???? The DJ in the club 2001 Odyssey in “Saturday Night Fever???” Self deprecating type of humor in his own right…. Hey it was on a lark..

                  2. Rodney Dangerfield in person was an awesome show. Saw him once in Vegas. One of the better shows I have seen

            1. i briefly had an ALLY. account. Closed it when they wouldn’t fix basic problems. Preferreds are listed several different ways and you can buy them any of those ways. But if it’s not listed exactly as on their master list then the program claims you don’t own it. I had to teach the clueless reps about their own platform. Never got fixed.

              I saw Dangerfield live in the 80’s. He’s funny but I knew all the jokes. He didn’t do any new material or improv.

              1. Yep, thats the same Ally, I know. I used to call in and have them adjust it, but I dont even bother anymore. Some of these I really dont intend to sell like the SLMNP types. One of these days I will just have to sell them and then close it out. Surprised it even has customers. Even Robinhood laughs at it.

    2. I got a corporate action notice from Schwab last week for seaspan. I didn’t participate, but I did see the notice.

    3. Hi Gridbird–
      I received the notification from Schwab a few weeks ago. Adrian has pointed
      out the key features re the conversion offer. In my opinion, the offer stinks!
      I had 1000 shares and sold for a profit just hours after the announcement; happy as all heck re my decision.

  10. FPI-B dropped down to $25.70 today. A little juice game I play is buy here (which I did), and dump near $26, as that is its range. Its current “par” is $25.80 and may increase on any participating land value increase adjustment come this August. Has some volume today at 27,000.

    1. Grid, how do you gauge the call risk on FPI-B since it is 9/30/2021? Obviously, your entry price is below 25.80 but do you think they will call it?

      1. Mikeo, I dont really worry about that, being its good here. The real worry if one doesnt like, is they could convert to common shares after that point. Im not sure that is a game I want to play. The CEO is constantly rattling his thoughts on this issue in conference calls. He knows his arse is backed into a corner. He really cant raise the common divi much until he gets this cash draining preferred off the books. And that would be by a diluting conversion to common . Maybe a LANDM term type issue could lower the 6% and get the 2024 9% penalty rate off the books. But it doesnt look likely.
        He said they had plenty of time (they do as the penalty is 3 years away) but he wasnt going to wait until end and get backed into a corner (I take that as being forced to convert at a time when common stock is low). The common is pretty high now. For me? I trade it all the time over and over. And I want to be a player at the table when the August land adjustment is posted. But come September, I dunno.

      2. Mikeo, Since it has become a fairly large position now for me (at least near term) I did some reflective thinking on it last night as opposed to next flip with it. I dont know specifically what rolling 12 month period is used for land appreciation from USDA, but farm land is increasing again. In some parts of Illinois it has jumped double digits, since last fall and FPI has over 30% of their land in Illinois alone. If the total ave comes in at 4%, that boosts the “par” value to $26.05 come August.
        My point is that this participating part of the preferred is most likely going to force a conversion sooner than later, as it just gets more expensive waiting to redeem or convert. Letting the preferred appreciate more is just “wasting money” that would just dilute the common more. Reading the cycle here of locked in rents for 2021 and farmers expecting to “pay for it” in increased rents 2022, Im warming up to letting some just convert when/if it happens. The rent cycle would be on upswing, the stupid court lawsuit will eventually wind down and free up cash, and there is a definite recent trend in people “buying up land” with their wealth. Maybe Bill Gates will just buy up FPI, lol. He already is biggest farmland owner in US. He owns at least 100,000 more acres than FPI does.

        1. Thanks for the thoughtful replies Grid. It does seem farmland is an unappreciated nugget of opportunity.

        2. Gridbird:
          Using the hypothetical 4% appreciation of composite farmland value in your example with a 50% participation for FPI-B, 4% x 50% x $25/share = 0.50 increase from the present redemption value of 25.80. 25.80 + 0.50 would equal $26.30, NOT $26.05. Am I missing something?
          By comparison a 2% appreciation would equate to a redemption value of $26.05/share come August. I would speculate that the redemption value in August might be something in the range of $26.00 – $26.30/share.
          You have a good point with the incentive for conversion of the preferred as a path to increase the common dividend.
          I have no interest in a conversion to common stock either. That would be a problem. Common is a speculative bet on farmland values for certain types of farmland.

          1. Dave said: “I have no interest in a conversion to common stock either.”

            Dave, we don’t know for sure but personally I would say there is a >50% chance the preferreds will have a forced conversion to the common. And the second FPI announces it, the common will drop because of dilution. And you will have ZERO warning before it happens.

            There is a precedent for this. AMH had a similar feature on AMH-A &B where the principal value increased each year based on housing prices. AMH-A was worth $28.96 when it converted to common. The common fell enough it was something like being converted for ~ 0.75 to 1.00 less. You still came out ahead if you bought it around 25, but if you were late buying it you would have lost money. I expect the exact same scenario to play out for FPI. We can estimate how far the common will fall based on dilution, but it appears to be a significant amount. I would not be surprised to have the conversion effectively come out to less than $25 if you sold the common immediately.

          2. For what it’s worth, here’s a link to last August’s Land Values Summary from which FPI’s FVI Factor is calculated. https://release.nass.usda.gov/reports/land0820.pdf. Figuring the exact way this will be applied by FPI to come up with its FVA number when this next comes out this August is tougher to figure out as it requires an exact knowledge of where its current portfolio of farms are located vis a vis the August report and the percentages within each sector…. in ’18 FVA amount was +21¢. ’19 was +48¢ and ’20 was +11¢ for a total of 80¢ presently. Given farmland in general seems to be playing catchup after 2020, it would seem reasonable to guesstimate +50¢ this year imho, particularly when taking into account Grid’s more specific data from the IL area.

            Regarding calling or converting, I fully expect something to happen on first available date 9/30/21. Having played the two AMH preferreds back when that conversion took place, I know there are ways to hedge out the risk of conversion to stock via shorting the common in advance or other more sophisticated ways… I didn’t do that… I let them convert to common and then sold the common… It was difficult if not impossible to capture the full conversion value completely by just plain selling when your shares of common posted, however, it did not take long for the common to recover from the selloff of those wanting out immediately… I forget how long it was exactly, but the point is it’s highly likely that a decrease in the share price caused by the conversion and probable selling pressure from those wanting to cash out immediately will most likely be a temporary event.. Also, going by memory alone, even the immediate sale of yoru common still netted a good return – but maybe that wasn’t the case for those who came late to the game.

              1. Looks like he is guessing farm appreciation this year where I have been reading. Take the 4% middling guess range, and it resets value to $26.05. He hints around on a few things correctly I believe but doesnt drill in.
                I know you agree, but Pittman has to redeem this sooner than later. The preferred will just keep getting more expensive with land on upswing, and this ultimately dilutes common even more. TV didnt mention that side of the coin.
                There just isnt a path out of conversion as he needs the cash flow to bump up common divi, and has admitted as such. Unless he can stall out with some goofy term dated issue at lower yield to justify stalling out the preferred riddance.

                1. You would think that FPI has matured enough as a company that given the prices achieved by OCCI and some of the other BDC type companies prone to issuing 5 year paper that FPI could easily issue a plain vanilla 5 year type of issue that could command something around 5.50-6% or better range (hello private placement for better rates) just to get out from under the costly FVI Value wrinkle that they needed to include to do FPI-B.

                  1. LAND pulled it off with LANDM, so it is possible to get out from under the PVI and stall out dilution process. But it doesnt help with the chronic cash poor generating position to help common stock though.

                  2. 2WR, Last time it popped to near $26 I didnt sell instead I just tripled down at 25.70. But thanks to TV I guess, I just unloaded half the recent 25.70 load at 25.98 and .99. Its still my second biggest position though. Im going to be a bit more guarded with the rest as I wanna be a player come August adjustment.
                    I guess Pendys double down on a loser strategy works sometimes. I sold my RCA for a buck gain over 26.50 a month or so ago. Bought them back at $26.20 a bit too eager beaver because it dropped to $26 next day so I doubled down. Back in black now again. RC common been on a roll. The darn thing is actually getting within earshot of initial conversion strike price.

                    1. Moron is losing his touch. He recommended GSL-B today in SA and only gave me a 9 cent bump. Thanks for nothing Moron, lol.

                    2. Been out mowing the world’s grass this afternoon on my new Ferris since old mower bit the dust after 752 hours……. Gee, Grid flipped for immediate profits on two issues??? Who’d a thunked it?

                    3. Ha, no, just the partial FPI-B. The RCA I doubled down on, and the GSL-B I continue to own and have for a while now. I just thought I would get a better bump from Moron. That was weak. It will climb naturally on its own to $25.50 when it approaches next divi again, so he was no help at all today.

    2. Picked up 400 shares at 25.71.
      I will play the “Penny Dreadful” game.
      Since we are 35 days past ex-div, does that mean we are up 14 cents plus the 09 cents intrinsic value?
      So this is what they call BIG FARMA?

      1. Newman, Heavy volume drove it down today. I tend to squeeze the juice out of it trading, it the 25.70-$26 range, but near term its not a bad hold issue. And being tied to FARMAland makes an interesting diversifier from the beaten path. I cant imagine farmland decreased in value from preceding year. Im hoping for a nickel or dime increase on the “par” value of the preferred come August. Anything above that is of course fine, too.
        As far as the numbers go technically we are only about 19 days into next cycle. But since you only have to get to about mid June (give or take as it hasnt been declared yet) to capture the divi, your math works out the same, or close enough for me anyways.

  11. Question. Today was ex-div for AHH-A. I have held for a while and had a nice gain in IRA. I entered a sell order last night for half at $26.49. So far I have had most of it fill, figure I can buy back cheaper by next dividend. Am I missing something or did some one way overpay for these shares? Thanks

    1. Doesn’t sound like you’re missing anything, just a very successful dividend capture. It happens. I often place high sell orders before the open on ex-div day. Sometimes they get executed on the way down. In this case the price held up all day.

  12. What is exactly is the standard “dividend flipping strategy?” Buy a few weeks before the ex-date and hope for a pop in the price? Do you hold through the ex-date or not?

    1. Buy before, sell on or after ex-div date to capture the dividend. The price often falls less than the amount of the dividend and you make a small profit for a few days invested. Then recycle the same dollars so the small profits add up.
      Exactly when to buy and sell depends on price movement.
      For me, dividend capture is just another way to trade on price movement. More opportunities seem to occur around ex-div time so I specifically look for them. I don’t claim to know why it works but as long as it works I keep doing it.

    2. For me it varies, Karma. Depending on issue also factors in. Some issues actually rise a few weeks out pre exD and then actually fall before exD so you have to be aware that you maybe “buying the divi”. I generally buy a month out and watch previous patterns from earlier payment cycles. Also like to buy on dips from “down days” inside that period.
      Also some spike up and recover quicker after going exD. I generally flip more on pricing than the dividend strategy though. Crazy stuff and factors beyond ones control can occur. Just look at AFINO/AFINP. And as I mentioned LBRDP. It went exD today of 44 cents and yet closed up 85 cents. Probably will drop tomm since volume was light today.

  13. CIM-B is now 20 cents higher than CIM-D. Normally it’s at least 40-50 cents higher sometimes as much as $1 because of higher floating rate. Doesn’t necessarily mean CIM-B is a buy but it does mean CIM-D is a screaming Sell or Swap into CIM-B. I did some of each.
    AGNCM and AGNCN have also gotten way out of whack compared to AGNCO and AGNCP.

  14. End of quarter is a huge time for REIT preferred dividend capture. I’m looking at preferreds for
    AGNC NYMT CHMI
    DX-C CMO-E XAN-C
    ANH-C leading up to merger with Ready, may be called but trading below par.
    CIM preferreds next week but may be too late they just made a big move up. Swapping between CIM-B and CIM-D has seen some nice swings.

    Non-REIT div captures are also plentiful but don’t look as attractive this time around. Forum favorites XOMAP and LBDRP are in there.

    AFINO is my biggest play at the moment. Trading 60 cents lower than AFINP. First dividend will be an oversized dividend and when it’s announced I’m hoping for a pop. I traded between these two for awhile until AFINP ran away.

    1. Oh ya, Martin..The ol “Fake higher yield” fumblerooski trick play. One of my old favorites out of the coaches playbook. Almost always works when the team really needs to put some points on the scoreboard. Not a personal fan of this type of company, but I am going rent it until around exD time anyways. Thanks for the reminder. Its going to show a bloated plus 50 cent divi when company announces divi real soon, and will show an 8% yield. The last time I executed this was the SCCC issue when it had its first one time bloated interest payment posted on the board.

      1. I am not the flipping maven you are, but AFINO has been a great little monkey. I flipped it 3(?) times since IPO and I am back in for the Divi capture. Don’t want to hold it long term, but OK for short term.

    2. Thanks Martin for the reminder. Added shares of AFINO on weakness today for the short-term rental.

      1. Mahty its just returning to the price where it was at last week while AFINO is still sitting on the same stump price wise. The fools chase divi still hasnt been posted yet for AFINO. In fact it doesnt appear the preferreds or common has been posted yet.

            1. Thanks for info, EOZ. I bought another small lot at $25. Aholes werent gonna go $24.99 for me at all. They need to get that fat oversized divi plus stub posted to get the hogs and dummies interested in chasing that divi before it goes exD.
              Maybe the same fool who is trying to buy 5% $20 par HAWEM at $26 unsuccessfully will switch over and over pay for my AFINO..
              Hopefully we arent getting ATM dumped by AFINO to keep price down. It sure is having a lot of volume right at $25. But no company would be dumb enough to do that I hope.

                1. Bob, I dont own it. If I did I doubt I would ask for $50, maybe $29 tops, lol. Maybe the guy got a bit smarter and dropped it to $24, but he forgot to drop his HAWLN 5% $20 par bid as it is sitting at $24.40. Where are these fools coming from? And more importantly why dont I own HAWLN and HAWEM so I can give them what they want? 😕

                  1. I could use one of those guys to show up on GGO-A and maybe pay $48 or so on that $40 preference issue.

                    1. 2WR, Nothing is coming that easy for me, but Im grinding away for nickel stacking. Latest has been selling spikes and then turning around and buying them right back. A couple examples rode GSLD up to $25.80 and dumped yesterday and bought them all back in $25.50s today. Just recently bought in 25.20s and didnt really want to let go. Same thing with LBRDP dumped some a couple days ago over $27 and bought back at $26.70 yesterday. Keeping a full load there. Probably should be selling on todays spike but kinda like this issue as a hold for a while.
                      And then you will really like this for micro flipping today… I have about 1000 shares of PCG-A and saw the bid and ask were bouncing by the second up and down a buck with no action. So I decided to micro market dump in small lots and was snagging over $30 on them for a few hundred in total. Then turned around and bought some PCG-B with the proceeds as the price was better stripped yield than the lead dog A series was sold at. That kind of stuff keeps me amused until some of the actual real flips get heated up enough to sell and move on.

              1. Well I guess for all the BMC’ing going on with the AFINO flip (led mostly by me I must admit), it really hasnt turned out bad as it came through on the back door side. If I sold now the annualized return would be about 28%.
                I overloaded to buy soley as a flip. But I dont see a better option, especially with AFINP flipping the bird at us at $26.76, so Im digging in and hanging on.

                1. I thought I was the only one keeping my stash on this one.

                  I have an order in to sell, but it is a LOT higher than what it is trading at now.

                  I am with you, as long as something better doesn’t come along I might as well see if the price rationalizes on this one at some point.

                  1. Scott, Its either going to catch up, meet closer in the middle, or AFINP will fall back. Two out of three options are positive for us, lol…
                    Kind of concerned I have been stretching and reaching for yield as my biggest 5 holdings are WTREP, TDJ, QRTEP, NSARO and SESCF. But then I just checked from this time 3 years ago and it was NSS, FIISO, ALLY-A, ABRN (now defunct) and GBL-B (now defunct). So it looks like my memory is faulty.

                    1. I think most people’s portfolios are a bit more risque’ than they imagine them to be.

                      We all think we are stately ballroom dancers who carefully consider each step we take in a finely choreographed procession of moves, but when we go back and look at the tape it probably looks a lot more like a cross between an epileptic seizure and go-go dancing ;o)

                      Everyone has to dance with the Mr. Market, and that bi-polar drunk calls the tune.

                    2. As long as liquidity and risk on is prevalent with a growing economy I will push it some. But I still force myself to keep a third in illiquids. I will trade them with each other for small gains in a walled off stash.

                    3. As I look at that list of 5 I ask the pre school question, “which one doesn’t belong in that group?”

                      Really keeping my fingers crossed WTREP stays outstanding for a time. Effectively, it’s BBB credit with B yield.

                      Nice chat we had with pendy.

                    4. You think NSARO is stretching for yield? Hmmm…. Or am I misreading you?

                    5. Camroc, you are only misreading because I didnt elaborate fully. No, clearly NSARO is a quality illiquid. But I had to mention it because it was in my top 5. But, top 5 can be misleading though. WTREP is my biggest holding, but if you viewed my Ameren preferreds collectively then it would be my biggest hold even though singularly they arent.

                    6. Bob, I missed your post here.. You have doing a good job of razzing from the peanut gallery. I got to join you on one, and tried to do more but was blocked at the source. I think Penniless is finally getting smart and not taking the cheese anymore as much as it kills him. But he finally learned just we bring up more of his bad picks if he engages and his hole gets dug even deeper.

                  2. Sold my 2nd 100 of AFINO still holding a huge stash, three or four times my normal amount. Could end up being my biggest short term winner ever.

                    1. I bought a bunch of LBRDP at basically same time and it has done a lot better than our AFINO. Though that was a more predictable event than this one has so far. Due to dearth of opportunities I probably will keep my LBRDP as its basically a tracking stock for Charter since it owns 25% of Charter. Im still looking to exit AFINO, I just need a reason or opportunity on a bigger bounce.

                    2. If anybody is still in AFINO note that AFINP fell within range and AFINO crept above 25. I cashed out half of mine and used a small amount of the proceeds to buy AFINP in the 25.30’s. Still holding half for potential gain or for trading.

                    3. Martin, Im still hanging on to my AFINO. It started as a flip when purchased, but dont have a real exit plan yet.

                    4. I thoiught a 2.5% profit with limited upside was an exit plan. But you’re more of an all or nothing trader and I’m the guy who sells 100 shares at a time as it gradually rises. I was overloaded, now I have a normal amount and a hefty profit.

                    5. Outside of illiquids, I have never seen a preferred hold as steady as AFINO has.

                      It is really mystifying. Every time I look it is only a penny or two off from the $25 mark. And I know good and well, it would make a big jump the very next day if I were to unload it.

                      That is fine though. I made a bunch buying LEAPS of WFC this week. Next week we will find another way to make something — and so it goes.

                    6. I sold some AFINO today for 25.15 to get funds for something else. nice jump today

                    7. Martin, Im more of a feel or need to buy something else better deal flipper. We made our gains on the back end post exD, not the front end. If it had shot up to $25.50 pre exD, I would have flipped. But since we got it on back end and it returned back to par quickly, I just have kind of sat on it. I guess at this point Im just thinking like Scott R is. It seems to be stable around here, so I will hold until a better trade comes along…So long story short, I started with a plan and ended up without one, ha.

                    8. Below: I had half my overweight position in AFINO click at 25.16 today, after divy and 1.84% gain (unfortunately all ord income, sad face).
                      A bunch of other orders clicked too for under 10 shares. 4, 6,2, 10…? okay by me, glad commissions are gone. I’ll keep the open order to sell on the other half of AFINO and see the plum-reaching continues with the others non-IGs. Seems like a couple other sell orders are being approached too.

                    9. Looks like some one cleared open sell orders below 26.95 for BFS-E at close. I had an open sell order that had filled 3 shares then price popped to $26.95.
                      It looks like someone has been testing the waters with these small ticks of a few shares here and there then got itchy finger at the close!?

            2. I already have too much AFINO. Don’t want to be exposed to the risk if the bottom falls out. “Oh hey, 24.99!” Buy! Buy!

              1. It climbed back to $25 at close, too late! Im sitting on a 3 cent capital loss per share. Time to get the divi posted so some air can get pumped into this flat tire.

                1. Gridbird:
                  AFINO has traded close to $25.00 since the 17th with 5 high volume days. Could some of these be ATM sales? If so, might that be a partial cause of the present price differential between AFINO and AFINP? Only a guess. FWIW.
                  Patiently waiting for the divi press release.
                  – Dave

                  1. Dave, that has been my main concern for several days running. Cant find proof but its trading and volume smells of it. Anyhow, its about “show time” as they just declared. Hopefully they arent poking holes in the tire while the divi chase is trying to reflate it.
                    Accordingly, AFIN declared a dividend of $0.53033 per share of Series C Preferred Stock payable on April 15, 2021 to Series C Preferred Stock holders of record at the close of business on April 5, 2021.
                    This one may struggle, to get the return I wanted as a flip, maybe its just too clinical. The better ones are the unexpected ones like where I caught NYCB-U drop Tuesday and sold it Thursday for 75 cents a share goose.

                    1. who is paying 25.89 when almost the identical paper can be bought for 25.02……..is there an explanation?

                    2. Dividend declared and that wasn’t it. Could be a large seller gradually dumping at the worst possible prices. Or somebody who knows something we don’t.

                    3. *We will get some modest pop minimum. It will take a few days. But nothing like my CEQP- today. Close to a 50 cent pop today off an $8.20 start.

                    4. Grid, Your following Rida ! ?
                      Could it be your .49 cent pop in price was due to him writing a article on it and his flock of sheep following his lead?
                      Now we figured out your flipping method. Follow Rida M and sell a couple days later !
                      lol

                    5. Charles, No Rida had nothing, nadda, zero to do with this one, as he has recommended this one quite frequently past year or two. He just lucked into the latest article submitted right around the time the GP was bought out and all supporting details including common/preferred buy backs and increased cash flow guidance.
                      This was a big deal for company, as the cash flow requirements for payments has gone down considerably. For me as the preferred holder, I love a lot of cash leakage below me stopped even at the expense of some above me added on to do it. Their finances are in pretty decent shape. Chesapeake issue is over and not a problem or overhang anymore, their guidance is always conservative and they meet and beat. They are determined to stay fiscally sound.
                      I have owned this as a flip over a year and a half ago, so I missed both the carnage and subsequent huge price run up gains. But after switching investing criteria about 3 months ago it was one I bought several times in $7.5-$8 range and plan to hold. I actually bought a smaller amount of 500 shares premarket yesterday at $8.35.
                      With GP gone, what would be really sweet is if they would convert to CCorp like others have and thus get this preferred turned into a regular CCorp preferred instead of the stigma K-1 preferred. They didnt mention it so Im sure its no near term plan if ever. But unlike family run EPD, there is no huge tax overhang on CEQP.

                    6. Thank you Gridbird. The delta at the close of today, March 29, is $1.04 between AFINO and AFINP. Quite a price spread. AFINO volume is consistently greater than AFINP. We will both see on the 1Q 10-Q if AFINO had 1 Q ATM sales when the 10-Q is released during May. With the dividend notice press release the train has left the station.
                      You have quite a knack for flipping and should be commended for it. Thanks for your inciteful and actionable comments on III. Keep up the good work.
                      – Dave

                    7. Dave, I am up 2 cents and have only just begun to fight! 🙂
                      If you would have bet me before market open AFINP would clear $26.50 and AFINO wouldnt break $25.15 today, I woulda taken that bet and lost!
                      Something odd with the constant volume that is sure. It clawed above $25.10 and looked to be moving, then more volume smack down dropped it back. Its not a lost cause yet I dont think as one can get it on the back end after exD creep up. Im not staying in it long and beat my head against the wall. Its more leveraged than my personal taste, but its not WPG on its last wheez. Tenants are 70% IG, and rent collection at 97% and growing. I will wait a couple weeks after exD before I throw in the towel.

                    8. Well guys this AFINO flip was a flop. Damnest thing I have ever seen. Its trading volume like its a billion dollar float. Something beyond our knowledge sell wise is occurring. So you got AFINP paying out a smaller divi closing at around $26.30 and AFINO with bigger one time payment stuck in the mud at $25. We got the right jockey but the wrong horse here.
                      Crazy stuff and then you got LBDRP which I bought a lot to hold not flip recently and it jumped over 3% today and went exD today on top of it. Gonna keep AFINO I guess for a week or two and see if I can get a dead cat exD bounce back towards $25. But it looks like a dead money trade unfortunately.

                    9. It’s not all-or-nothing. I may give up 100 shares at a time. Depends on how fast I need the money for other things. With all the quarter ending ex-div’s now it may be awhile. I actually snagged a little more today at 25.01

                    10. Certainly nothing wrong with that. Im not pulling plug yet either, but wont camp out with it either. I dont know if you have noticed, but FPI-B has been one of the easiest 20-25 cent flips past several months. About 3-4 times a week (sometimes in same day), I will sell half my core of 1000 shares in the $25.90s and buy back in lower in $25.70s. Largely semi anchored to its current $25.80 “call or convert” value as it reaches first call date this fall. Hope for a land value boost again come August.

                    11. Haven’t been following that one I’ll check it out. If you’re still in LANDO that’s been bouncing around in a narrow range.
                      I sold the new MBINN and then bought it back at the same price. All because MBINO took off. Hopefully it follows but could be looking at another AFINO stuck in the mud. GFNCP was another good one but now it’s in call risk territory. Don’t know why they let it ride.

                    12. Grid,
                      Can you tell me what this paragraph in the FPI-B prospectus means?
                      “Cap. Until September 30, 2024, the amount payable upon any redemption, conversion or liquidation event will be subject to a cap such that the total internal rate of return when considering the initial liquidation preference, the FVA Amount (if any), the Premium Amount (if any) and all dividends (whether paid or accrued) on the Series B Participating Preferred Stock will not exceed 9.0%.”

                    13. Bill, FPI has that window from 9/21 til 9/24 where it can be redeemed or converted at current 6% coupon plus the farmland value appreciation. This is a “participating” preferred where preferred participates partially in increased value of farmland prices. So its just basically capping any maximum participation one can gain.
                      After 9/24 it goes into a straight increase in coupon payment to 10%. So in reality this thing will be redeemed or converted sometime between this September and 2024. Reading the hints from CEO, Im expecting a conversion sometime well before 2024. Its the only real way the common can get more value and cash to it. Im playing it until at least August when the next land value assessment occurs to see if it appreciates the conversion/redemption value on top of current $25.80.
                      This is an asset rich cash flow poor entity. Im not looking to get converted so I will always be near eject button come this fall.

                    14. In ’17 AMH had 2 preferreds similarly structured to FPI-B. They were participating preferreds tied to the appreciation of home values, not farm values payable in cash or shares at the company’s option. AMH chose shares.. I held AMH-B thru the conversion and, somewhat as expected, AMH did take a hit upon conversion thus limiting immediate exit at full conversion value…. However, if memory serves, AMH recovered quickly and full value was achievable within a short period of time, probably less than a month afterwards.

                      I don’t have the temperament anymore to goose returns via Gridding my position, but I have managed to add to it twice the last 6 weeks at 25.69 and .66. Pretty easy decision when present “par” call is 25.80 and in all likelihood going substantially higher when FVA Amount is recalculated in August…. When you think of what’s happened to real estate values in general over the last year, it seems as though it’s a pretty easy bet that FVA amount will go higher by an amount greater than even last year’s increase of 11 cents

                    15. AFINO – Today TDA shows AFINO as DOWN while Fidelity has it as UP. One of those rare occurrences when Fidelity gets it right and TDA doesn’t.

                    16. On ex-div date sometimes they factor in the dividend and sometimes they don’t. Doesn’t seem to be a high priority for any of them.
                      Sold my first 100 of AFINO for 1% profit. Holding most for now, there could be a lot more upside.

                    17. Martin, Im greedy and waiting a bit more. May peel some at 24.85. We got our juice on the back side. Technically the trade was worth it, selling right now. But I really thought this one would climb hard into exD. But the volume from wherever it was coming from, was just too much to overcome.

              2. Martin G.
                You seem concerned about AFINO post divi. Is your concern the long term interest rate risk, credit risk, general market risk, or perhaps another reason?
                Would you consider AFINO & VEREIT preferred to be of similar credit quality????
                – Dave

                1. Moderate risk, about right for the dividend range. Mostly I don’t like having too much money in one place with moderate risk. Don’t want to lose too much if something goes wrong. I’m a conservative investor when it comes to losses.
                  What happened here is I bought what looked like a good short term trade. The price dropped a little so I bought more. With day of reckoning approaching I bought even more. Before you know it I took on too much risk.

                  I haven’t been actively following VEREIT. I do it backwards, when I see price movement opportunity then I look into the company.

                  1. Thank you Martin G. I am a conservative investor too. My practice is to limit my interest to a preset amount in any specific enterprise.
                    – Dave

  15. Posted over on the sandbox if anyone had experience with NML or any other MLP related ETN or ETF Fund.
    I assume no one does since no comments. Monthly payer and has been raising its divided Still not much at 4-1/3 % I decided today if I held it for 3 months my shares would generate about 42.00 in dividends. It goes ex-dividend on March 12th .I decided to sell as I think its been bid up too much on oil price expectations will profit the MLP’s I think after next dividend announcement for the coming month of April reality will set in and price will drop. I owned it for less than 30 days and took a 360.00 profit

    1. mSquare I think you’re looking at the less relevant current yield to be coming up with over 8% yield on WCC-A,….. More relevant would be YTC aka YTW which at $31 right now is approx 4.92%….. that’s what’s going to determine when it’s too expensive considering that barring economic catastrophe for WCC or a gigantic explosion in interest rates in the next 4 years, there’s essentially 100% certainty WCC-A will be called ASAP.

  16. QRTEP goes ex-div in a few days and is at par $100. It yields 8%. Nice buy time as it will recover quickly from the ex-div.

    1. Most short term traders deal in common stocks there’s more volatility. I trade preferred stocks for precisely that reason. More predictable, profits are smaller but losses are less frequent so the smaller profits add up. Wild swings don’t suit my temperament.
      You need to find what you’re good at and what suits your temperament. This particular forum is focused more on preferreds.

      1. Hi Martin,
        That was mostly a ‘thinking out loud’ type of question…

        I guess I didn’t consider how that would be a lot like day trading, but I was specifically thinking along the lines of ‘flipping / dividend capture’ with a common stock. I can’t remember who made the original post that got me thinking about this, but it was in reference to a $.19 special dividend on top of a normal $.11 dividend.

        I haven’t really paid attention, but I guess common stocks don’t behave the same way as preferreds with regard to dividend payments and ex dates.

      2. If you like short term stock trades it is probably easier to just play the options.

        You generally end up with a combination strategy anyway where you will have some short term trades when things get put to you, or when you want to hold something to sell covered calls off of.

  17. Would UMH-D be a decent dividend capture opportunity right now? Trading at $24.80 with a .3975 dividend with ex-dividend date on 2/12? In searching the site, it seems to be one that others have used in the past, but is not one that moves much normally.

    1. Maybe. I wouldn’t expect much of a gain on that one. The way I use dividend captures is to reinvest the same money repeatedly so the small profits add up. Alone it might not be worth the trouble.
      I like UMH-C better for the higher yield less downside risk though upside is limited because of call risk.

    2. If you are a long term investor, it is a decent add. Very low volatility with regular payments. If you are a flipper or day trader this is not a good investment because the volatility is low. After a div payment it drops less than the payment and has a targeted range.
      Disclosure: I own several thousand shares of UMH-D because it doesn’t move much, and I don’t see any signs of company trouble in the current setting. I own it in my long term holdings vs flipping. This one helps my long term goal of 6%.

      1. Thanks! With the dividend imminent, does the entry point make sense now for a long term hold?

        1. In my opinion it still does as you get a .40 div and doesnt have the typical large div drop that recovers over a quarter – it is fairly flat. A guess is that it along with others have been under slow accumulation since this past Summer. It is also under par. The pool of > 6% is shrinking, and is a possible call 1/23 that in a year will keep it pinned to par in a low rate environment.

        2. Good entry point is whenever you get a fair price. Before ex-div is often better than after. On the other hand, prices went up today. With the stimulus passing they might not come back down. If you want it I’d buy it.
          If there’s a housing crisis people downsizing have to live somewhere. This may be the last housing sector left standing. But you do have to watch non-payments.

            1. I bought UMH-C when it fell to 25.40. For a flip. Not expecting much but possibly enough for a weeks work. Anything more than a nickel is pure profit.

  18. With buyout by NFE and a JV with Golar LNG assets, isn’t GOLPF worth considering for a flip. It was trading in $22s most of Nov-Dec and gapped-up to $24s on the news.

    Based on the buyout It may still have some upside while you collect the nice 9% dividends.

    Am I missing something as in hidden risks or is this buyout by NFE not change its prospects and possibly credit rating?

  19. CHMI preferreds took a nosedive on high volume during the last half hour yesterday. Look for more such opportunity today as fund managers demonstrate why I’ll never buy another fund. Waiting until the last minute to do forced rebalancing or closing large positions that no longer fit their rules.

      1. They fell at the open for ex-div. Then fell again at the close. I regret that I only bought a small amount, didn’t know for sure.

  20. I have taken a small position in QYLD – covered call strategy ETF w/monthly pay and yields @ 11% with .6% expense ratio. Anyone else holding this or looking at it? Thinking of increasing my position

    1. Interesting ETF. Expect volatility, but it has a 5-Star Morningstar rating. I might take a light position on the next dip.

    2. There’s no magic in a covered call strategy. You take less risk, you will likely get less return. QYLD is up 7% ytd while NASDAQ 100 is up about 40%, so clearly there is little relationship between the strategy and the underlying index. So what’s the point other than to give you an artificially high yield and a perpetually declining NAV?

      1. The index QYLD is tracking is CBOE Nasdaq-100 BuyWrite V2 Index, not Nasdaq 100. Goal is to have monthly distribution that is relatively high without doing the work on covered calls on my own. Also wanting to see if there is good dividend capture option so keeping an eye on how it moves each month. I see a lot of CEFs that pay monthly but pretty high expenses

        1. The point is a covered call strategy is fake yield. It doesn’t improve the return you get for the risk you take. It basically acts like a balanced fund that pays you back a chunk of your principal every month. Why would you want to pay for that?

          1. karma-
            If you are saying that they pay ROC- yes they do, but it is a tax term, and not always destructive. They’re nuanced, and many don’t know just what goes on — if only it was more obvious.

        2. tghokie – STK or QQQX are better tech CC funds than QYLD. Toss them in the Div Channel or Port Visualizer for any given period. They dominate the field & crush QYLD.

    3. if you’re holding, not flipping, you may want to look at QQQX instead. Nearly twice the cagr of QYLD

    4. I own this ETF. It pays a good dividend and I use it instead of any QQQ? ETF or CEF. While you are at it check out NUSI, another ETF holding Nasdaq 100 issues but using options to mitigate loss. Howard

  21. CIM-B is currently selling lower than CIM-D. Should be 40-60 cents higher because of higher floating rate. Good arbitrage opportunity.

  22. Still waiting on PCG to resume all those dividends.
    Thought it would have been announced by now.
    Would it be better to buy them before or after they go ex, or not make a difference? they are likely going to trade with a due bill as well, so the ex-date will likely be after the pay date.

    1. Depends on the price you get. More often than not it’s better to buy before ex-div date but not always.
      There may be volatility when dividends resume. Dividend capture strategy is more reliable when markets are calm. Volatility can drown out your small gains from the capture making it hard to tell if that strategy is working.

  23. Ex-div Thursday TWO-A,B,C and CLNY-G,H,I,J.

    Next week. MFO Monday
    NREF-A GMRE-A DDT NEWTL SLMNP
    FHN-C. I like FHN-B better, 6 month payer.
    GFNSL. can get better rate from GFNCP

    Coming late October
    GS-many NRZ-A,B,C LXP-C GFNCP AFGH JMPNL FDUSZ HMLP-A CTAA
    LMRKN,O issues K-1

    1. Took a position in MFO on October 2nd. Flipped it today the 9th for 48 cents per share, nearly the full value of the upcoming divi.

      1. I also bailed out early. Watching for a re-entry point. For the proverbial Double Flip.

  24. I don’t plan on flipping these, but I just got partial filled on 4 shares for a 1000 preferred from a limit order I placed in July and this was the first sale activity since then.
    Talk about illiquid.

      1. NCR’s preferred. The way I had to jump through hoops to buy it, it may be 144A, but I will be putting these in my will, so I don’t mind that I can’t sell them.

        1. I think it worth pointing out that dividends on NCRRP are paid in cash or kind at the company’s option. If my information is correct, since 2017, when the issue went “public” NCR has paid only 1 cash dividend, the rest being additional shares of stock.

          But unlike a drip program, where the dividend in-kind is valued at the market price of the issue, NCRRP in-kind dividends are valued at liquidation preference of $1,000 per share. So, for example, you are owed $1,000 in dividends, and the issue is selling at $500 per share, you are going to get $500 worth of new preferred shares, not $1,000 cash.

          Given the thin trading on the issue and the price volatility ($900/share one day, $600/share the next), its hard to value the dividend.

              1. The only I see pay with stock only when they are hurting for cash. Steel Partners did that one time this year. My understanding of ones that did it was they paid in common stock dividends off the “par” price payout, not purchase price.

                  1. There are lots of prefs that can elect to pay in shares over cash. As grid mentioned this usually happens in times of distress and you usually get Par/share price amount of shares

                    1. Yes, and if the pref is trading anywhere near “par” I don’t mind getting paid in script. But if it’s trading at 50-60% of par I need to consider that. In the specific case of NCRRP, if you think you’re getting a 9% dividend you aren’t. It’s more like 5-6% depending on what pricing assumption you use.

  25. All Gabelli fund preferreds go ex-div on Friday. Price movements are generally small, I make up for it with volume.
    Lots of quarter ending div captures coming up, including REIT preferreds for
    AGNC NYMT DX CHMI CMO ANH SITC and some TWO.
    Others include GNL-A and -B TANNZ MVCD AFINP SRG-A several NGHC’s and many others I’m not following.

    1. An analyst warned there could be a lot of forced selling during end of quarter rebalancing. It was an unusual quarter. September 30 could be a wild trading day, just like it was last year. I’ll sell my dividend captures and then get ready to buy.

    2. XAN-C announced resumption of dividends with a double payment. Went from $14 to $18. Glad I held on my 100 shares. Still a piece of junk but it may be tradeable junk.
      Could MITT be next? …Nah, didn’t think so.

  26. SAK is looking attractive on a pullback today. Originally bought 1000 shares @ $24.97 and sold @ 25.50 plus captured the initial dividend. Might pull the trigger here if I can get shares @ 25.34 and look for another $0.20 cents and dump them @25.54. Probably can’t get filled at that price. We’ll see…

  27. MFA-B IVR-B and IVR-C ex-div on Thursday. Not the best REITs but it’s only a couple days. Famous last words.
    SLMBP Wednesday. You have one day.
    CIM- preferreds next Tuesday.
    Quite a few on Sep 14.
    CBKLP
    PRIF-A thru F
    GECCM/N
    JMPNZ
    CBB-B
    SCCB SACC
    PLYM-A STAG-C IRET-C. High price.
    FCRZ FCRW
    WALA SBBA CNFRL BPYUP MAA-I

  28. Some dividend captures for late August. Prices have gone up lately so it may already be too late.

    NLY- series D, F, G, I
    PMT- series A, B
    COWNL, COWNZ
    NGHCZ
    TCBIP
    IPLDP
    SLMBP (Sep. 3)
    Multiple bank series from ASB-, CUBI-, WFC-

  29. Wondering what happens when the ex-div date is approx. the 15th of the month, which falls on a Saturday in August. Does the issue trade ex-div on Monday the 17th, or perhaps ex-div on Friday the 14th? I suspect Monday…

    1. Typically 1 or 2 days before. Ex-div date is two business days before the Record Date. Weekend days don’t count.
      Always go by the announced ex-div date it might nor be what you expect.

    2. One nice thing about the Merrill Edge platform is that when you look up a ticker symbol they provide both the current yield and ex-dividend date automatically in a popup screen. The Fidelity platform is much harder to navigate to get that information.

      1. @ Citadel West

        That information is included on any quote I request on Fidelity’s online screen and on the “Active trader” platform.

        1. I just tried Fido’s online lookup and no they don’t provide dividend or ex-div date from their ‘get a quote’ search box. You can get there with a couple of clicks but it doesn’t automatically pop up like Merrill.

          You must be special RB

          1. I have figured this out. Being lazy, I punched in the symbol K for Kellogs into the online quote request. I rarely use that platform. Anyway, all the info is there. However, when I punch in a preferred stock…you are correct…have to make a few more clicks.

            The ATP platform (that’s what I use when doing any stock trading or research) does provide all the info on initial request for both common and preferred stocks. The ATP platform is why I stay with Fido in spite of their ridiculous “must call in” requirements for floaters.

  30. Was successful in capturing the dividend and flipping for a small cap gain both DCOMP and CMREPRB the past couple trading days. Feels good. Makes trading fun again.

  31. Some dividend captures for Thursday Aug 13

    ABR-A, -B, -C
    ALLY-A
    AXO
    COF-many
    CPTAL
    AEL-B
    TANNL

    1. thanks
      I have not really been looking to do this but maybe its time to add this to the arsenal especially as I own some of these LOL

    2. How would you engage in dividend capture? Would you buy before the x-date and then sell thereafter, or buy on x-date and later sell? Would appreciate your help. Thanks.

      1. I buy before and sell on or after ex-div date. Basically I trade on price movement whenever I get what looks like a good price. Happens more often at dividend capture time so I specifically look for them. Some people have had success buying on ex-date because there’s more volatility.
        There’s a risk of buying bad stocks just for the dividend you could get stuck with a plummeting lemon.

      2. Certain securities have a tendency to jump right before the dividend, or return to the previous price right after the x-date, so they are not long term holds, but quick flips.

        1. The ones I follow the best times to buy are ones just around a month out exD and havent made a move. And many times they actually pull back a bit close to exD date. For example MNR-C I bought a couple weeks ago right and $25. I then raced to 25.50, but has receded back past couple days to 25.35 range.
          But these things are not always predictable and greater market sentiment can factor in..As a counter example PPX typically falls off back to $25.40 range after exD, but actually went up higher in price on exD day than it was pre exD this past time. So these things arent always a science. I personally dont often hunt a pure play dividend capture in and of itself, but will take it if it comes.

          1. Martin, I have been focusing past month or two more on the “next man up” trades as the thirst for yield is always insatiable after panic subsided. I rode the quality ones up and flipping them until they basically hit their natural ceiling. Then I went into next man up which was the ones that were a level below in safety but not the high risk trash ones.. Ones such as SCE-L, NYCB-U, LXP-C of that ilk. And am presently riding them up.
            The third tier level next man up is showing good pricing gains also now, but I am just not allowing myself to enter that arena.

              1. 2WR, What are the odds of that getting me a free cup of coffee anywhere? Im not holding my breath. Funny I even commented on the article and didnt even notice my name. I guess I am becoming an “article scanner” ha. I think this article came out about 2-3 years too late. The illiquids are plum picked over pretty clean now. IPLDP I dont consider an illiquid though.

                    1. Maybe Pendy and I can join forces and create our own subscriber service and successfully cause as many financial losses as HDO currently does.

    3. Martin, dog with fleas CNP-B also goes ex-div then, may be too late to milk it this time, it’s had a bit of a run-up lately.

  32. Sign of the times. The month ended and I only made one dividend capture play.
    And nobody posts here.

    1. Don’t despair Martin, you are not alone. Not a regular flipper but made modest gains in two accounts recently on EPD, may get in again down the road, it’s deflating now after ex-div. Steady on.

      1. I do quite a few short term flips, but most happen too quick to mention and sometimes gone quickly. Plus many are razor thin profit margins I just stack on that add up… But individually not worth it maybe for most….And then you get the ones that look primed for flips and you buy, they jump as expected and then realize where do you go if you sell? CTA-A and B along with LXP-C have fell into these traps for me. So they graduated into full time hold status for now.

  33. End of Quarter coming up. Plenty of dividend captures if you’re not overwhelmed by the risk and volatility.
    Preferred stocks of AGNC NYMT CHMI DX CMO ANH and some TWO.
    Also NGHCM/O/P GBLIL TANNI/Z AATRL MFINL JCAP-B SRG-A and others.
    Coming in a couple days the less promising BRG-A and STL-A.

    1. thanks for posting these. I own some of these. might be time to add a little and catch the div

    2. I bought some dividend captures and also bought more short funds. Becasue I have no confidence in this market holding. They’re prepping for another covid round so I dont’ want to be long going into the weekend.
      There are 3 days of dividend captures so by tolling over the same dollars I’ll limit my exposure.

  34. I have decided to peel back a lot of my PCG profits and run. The credit profile is going to be weaker than was implied based on last weeks info.
    The financing is said to include $4B of high-yield bonds, a $750M term loan led by JPMorgan Chase and an investment grade bond portion led by Bank of America, according to the report.
    So clearly they are pumping out some HY debt which will be BB credit at best. Granted this could be at hold co, but due to the tight linkage of sub and hold co, Im comfortable lightening my personal load from here.

  35. Now that volatility has settled down somewhat is it time to play dividend captures again? There’s plenty of them this week. I might float some of my sidelines cash through them. Please don’t crash before I sell them.

    1. Martin, past 2 weeks I have settled back into my grind it out 25-50 cent price movement rotation flips again. I have done some like UMH-B divi capture plays, also that you are referring too. I skipped next week and went into a couple weeks out cycle. For example I bought PUK- down in the $25.30s this past week to prepare for the divi flip out play. Its almost creeped back to sell point already.

      1. At a time like this I don’t want several weeks out. More chance of getting caught leaning the wrong way. My old trick was to quick flip this weeks issues then use the same money for the next set. When there weren’t so many other factors to consider.

        1. Its a world gone crazy when Im considered a long term holder going out 2 weeks, lol. For what I have been playing 2 weeks out has brought the better return. Liquidity is strong near term and no leveraged liquidations are present.
          At least for now…..

    2. Made 5 dividend capture plays all with mild to moderate success. Will do it again until volatility returns.

      1. Been having success with regular flips of commons. Flipped DAL for $4 and XOM for $4.80 each in about 5 days, for 10%+ gains. Also PSA-I for .91. Would do it all over again with all three. Also some swapping. Martin you have the patience of Job negotiating those bid/ask spreads all the time.

  36. Shameless flip trade in less hated UMH-B today near close at $25.05, as it goes exD tomorrow. Still holding shares recently bought at $24, but doing a play on a hopeful quick recovery to par and then dump these shares. Landys have been honest in the past on announcing and following through with redemptions. Though I will keep the core near term, this purchase I will only hold a week or two. Am not going to wait forever and beg it to happen or keep and see if it all plays out to fruition this fall. This is what they said this week at CC.
    We are positioning the company to be able to redeem our $95 million, 8% Series B Perpetual Preferred stock in October with proceeds from this fixed rate mortgage debt. Assuming no unforeseen issues related to closing on this transaction, we anticipate an increase in FFO of approximately $5 million while $0.11 per share annually as a direct result of this preferred redemption.
    But assuming that that’s not in the card. Was that debt, is that additional preferred, do you use some of the securities portfolio, how are you thinking about taking out that, it’s roughly a $100 million I think of Series B.

    Anna Chew

    Well, we have a term sheet right now which will give us approximately a $100 million at under 3% and so that is one of the sources that we would be using to called preferred.

    Rob Stevenson

    Okay, that’s secured debt?

    Anna Chew

    The money. That will be secured debt.

  37. Am I missing anything here? LANDP just paid dividend. Next 2 dividends already declared $.13xx If I read the posts correctly, it seems they are planning to call at the end of June? That would mean that today’s price of $25.34 is about 8 cents higher than what one would receive if held till they call.

    Has anyone seen any recent news regarding their intent to redeem or not redeem?

    1. Mark, I have seen no mention of them looking to redeem near term. They have waited this long it seems reasonable they will take it close to the 9/2021 soft redemption date before acting. Compared to their newly recent 2 private preferreds this one is a tiny one. This is a top 5 hold for me, so I am holding to get the larger cap gains rolled over into a LTGC before I do anything. Though the dividends are paid monthly they are declared quarterly. At current price you gotta sharpen the pencil and do the math to determine the risk/reward benefit to buy and with being past call also.

      1. Oh, right. I must’ve gotten this one confused with something else I saw on here.
        What do you mean by “soft redemption”? 9/2021 appears to be maturity. Is there a way they can extend this? I think I got confused because I saw someone post the next 3 dividends on here and I may have interpreted as those were the final 3… I already have a position at $25.13, so I’m in the money from here on out. I just thought I had an opportunity to free up cash without waiting for the next 2 divvies. Think I’m going to ride it out a little longer and maybe add more if we get another chance at sub $25.
        Thanks for the reply Grid. You da man. As much as you self depricate, you are a literal treasure trove of information.

        1. Mark, I try to give helpful info. I just need occasional help from the rest of the gang to clean up some posted brain fart errors every now and then. As far as LANDP goes, from lack of proper financial training, I call it a “soft redemption”, because technically its pure perpetual. Because they can leave it outstanding by adding 300 bps, which would mean a 9.375% payout after 9/21. So if something went wrong with company or credit markets, they could leave it outstanding. Its always good to know this in case one is wanting 100% assurance that it had to be redeemed.

            1. MCG, yes and that is clearly the proper definition, which is written in prospectus as “fail to redeem”. Though in the spirit of their folksy leader, David Gladstone, I use my own improper term. These are frequently thrown in as a bone for new companies issuing their first preferred.

              1. I am not familiar with that security but the wording is odd. generally FTR terms kick in at a certain date before maturity or on a perp this one is weird because the wording says “we are required to mandatory redeem” but it also includes FTR for the same date. I don’t see how they can not redeem it but again IANAL and not involved so no incentive to actually get a legal opinion on it 🙂

                1. Its mostly likely academic worthless musing as it will be redeemed most likely and would gladly take a large side bet at a Vegas sports book if offered. But they definitely could choose to leave outstanding if they desired. Gladestone cracks me up with his conference calls. He said in one if he could issue 3% preferreds he would never issue a share of common stock again.

                  Holders of shares of the Series A Term Preferred Stock are not entitled to any distribution, whether payable in cash, property or shares of capital stock, in excess of full cumulative dividends on the Series A Term Preferred Stock as described above; however, if we fail to redeem or call for redemption the Series A Term Preferred Stock pursuant to the mandatory redemption required on September 30, 2021, the dividend rate on the Series A Term Preferred Stock will increase by 3.0% per share per annum to 9.375%, until such shares are redeemed or called for redemption…..

                  1. The terms of the preferred are actually governed by the indenture not the prospectus so this document is the binding one: https://www.sec.gov/Archives/edgar/data/1495240/000119312516679339/d189817dex31.htm

                    (b) Term Redemption. The Corporation shall redeem, out of funds legally available therefor, all shares of Series A Term Preferred Stock on September 30, 2021 (the “Term Redemption Date”), at a price per share equal to the liquidation preference per share of Series A Term Preferred Stock plus an amount equal to all unpaid dividends on such share of Series A Term Preferred Stock accumulated to (but excluding) the Term Redemption Date (whether or not earned or declared by the Corporation, but excluding interest thereon) (the “Term Redemption Price”).

                    1. MCG, This came from your link which just confirms what I said.

                      (a) Holders of shares of the Series A Term Preferred Stock are entitled to receive, when and as authorized by the Board of Directors (or a duly authorized committee thereof) and declared by the Corporation, out of funds legally available for the payment of dividends, preferential cumulative cash dividends at the rate of 6.375% per annum of the $25.00 liquidation preference per share (equivalent to a fixed annual amount of $1.59375 per share); provided, however, that if the Corporation fails to redeem or call for redemption all shares of Series A Term Preferred Stock on the Term Redemption Date (as defined in Section 5(b)), the dividend rate on the Series A Term Preferred Stock shall increase by 3.0% per share per annum
                      to 9.375% until such shares of Series A Term Preferred Stock are redeemed or called for redemption. Dividends on the Series A Term Preferred Stock shall be cumulative from (but excluding) the date of original issue and shall be payable monthly in arrears on or before the last day of each month (each, a “Dividend Payment Date”) or, ……

                    2. I think you just skipped over it and went to B section. Its in A section in reference to my previous post, top of page 2.

                    3. Grid- I didn’t skip over it. My point is that they are at odds with each other. How can the company fail to redeem if they are required to redeem? Maybe if they don’t have any legally available funds but in that case are they bankrupt so who cares about a higher rate? 🙂

                    4. Ok, I didnt understand your purpose as the posted material from your link was in prospectus also…Nothing conflicting anywhere between the two. I thought you were trying to prove there was something that superseded what is in the prospectus and was missing there.
                      Its not that simple. There are several unlikely scenarios I can see without it being bankrupt and going to the higher rate and pay. I dont see that the provisions are mutually conflicting like you do. As stated being only $25 million, this will most likely without any worry get redeemed, and that is my expectation. But its in there for a reason, and one should always be aware of whats in a prospectus, and clearly, legally they have that right.

  38. Sold JPM-H at 25.71 and 25.59. This has become my new guaranteed moneymaker. Minor instability in a boring issue is a low risk profit. Along with JPM-G.

  39. If within 30 days one takes a loss on a pfd (or BB) and buys the sibling with identical coupon at lower price, but the sibling has a different call date and/or maturity date, would that constitute a wash sale?
    Examples:
    CMSC and CMSD – both 5.875% coupon but different Call Dates and Maturity Dates
    GAB-G and GAB-H – both 5.0% coupon but Call Dates differ (though only by 58 days)
    Best regards and TIA

    1. No aarod. A wash is the identical security (in the same account or they don’t catch it anyway).

      1. Qniform, thank you! I have not done this yet in a non-taxable account but now have the green light. Thanks again.

      1. mcg, thank you! I appreciate all your posts with useful info. I make sure to never miss any of your posts.

  40. End of quarter is a hot time for dividend captures. But the market is too wild to care about penny ante stuff now. Maybe I’ll do some div captures next week, maybe I won’t. Got more important concerns at the moment.

  41. For a brief moment AGNCO was priced lower than AGNCP. So I swapped all of my P for O. That’s a big improvement but it sure doesn’t feel like it next to all of the losses.

    NLY-F for NLY-D just $1 higher. Several other such trades. If I do enough of them I can lose half as much as I should have.

  42. How to lose money making a 9% profit. I traded NRZ-B for NRZ-C priced $3 lower. Two hours later I traded back at less than $1 difference. Normally that would be a killer profit. Not today, all it did was put a dent into my losses.

  43. Swapped AGNCO for AGNCN 35 points LOWER, that rarely happens.
    Swapped NLY-G fro NLY-F 40 points higher after making the opposite trade at+115 last week.
    NRZ-A for NRZ-B. The deals are out there, you just have to look between the lines.
    Bought SIVR, JPM-G.

  44. If anybody owns KTBA somebody is offering $33 for it. I regret that I had only 50 shares to sell him.

  45. TAIL is a bear market etf that buys puts against major crashes. One of the more straightforward bear market issues. I use it as one of my gauges for short term bottom. When TAIl starts dropping I decide it’s ok to buy bargains. Not to keep, it’s a bear market rally investment. Made a quick 36 cents trading CIM-D this way.

    Also looking at swapping out low yield new issues. Grabbed AGNCO at a bargain price for AGNCP at 24.59. DX-B for DX-C might also work. Still losing money for the week but a lot less than I would lose by holding everything.

  46. TAIL is a bear market etf that buys puts against major crashes. One of the more straightforward bear market issues. I use it as one of my gauges for short term bottom. When TAIl starts dropping I decide it’s ok to buy bargains. Not to keep, it’s a bear market rally investment.
    Made a quick 36 cents trading CIM-D this way. Grabbed AGNCO at a bargain price. Got out of some losers at minimal loss. Still losing money for the week but a lot less than I would lose by holding everything.

  47. 8% MITT-B is down to 25.56. Going ex-div tomorrow so the call risk is neutral. By comparison 8% MITT-C is trading at 26.84

  48. corr.a 7.375 coupon is trading at 24.98 and is callable now, but even if there was a 30 day redemption notice today, it is still accruing the next dividend so there would be some meat on the bone. Am I missing something? I added to my position.

    1. rk,
      I’ve been adding more and more of it on this weakness… It’s pinned to par with the call risk and I like that.

      BTW, i just pulled this on CORR-A from the 2018 report. Not bad…

      page 39 is where the meat is

      check the appreciation in it versus the indexes/comparables

      then, check the financial numbers…pretty damned good for all the turbulence in the energy patch

      https://s21.q4cdn.com/595039065/files/doc_financials/annual_reports/2018/CORR-2018-Annual-Report.PDF

  49. If this one isnt on anyones list PLYM-A may be one to watch if it hits anyones personal comfort zone. I have made a bit over $2.50 in flipping 4 different times this quarter alone, and just today finished completing getting back my 800 shares, so I also never missed the divi either. I had to wait but finally snagged the last 400 today at 26.50 and 26.64. It goes exD second week of march. It is one of those beauties that often will trade it will trade X and then an hour or 3 later trade 30-50 cents higher or lower next trade.
    What makes this a safer play (always a relative statement) is that 2022 first call date and 2024 the penalties kick in for leaving issue outstanding. I wish all preferreds had these types of provisions. Plus being an industrial reit, market likes these types. And common (this is a newbee Industrial Reit only a few years old) has been good and its growing into its common dividend and exceeded it recently. Added emphasis for newbees…Issues like these have wide bid ask spreads…Ignore the ask!

  50. I bought 500 shares of USB-O

    Investment grade 5.15% trading at 25.30 – dividend is qualified

    Goes ex on 3/31 I believe

    1. Call forthcoming? That’s the only reason I can think of for that price. If not, good purchase.

      1. I was able to buy USB-O for 25.20 back on 8/7/19 and sold it in December for a dollar gain.

        I don’t think it’s worth it for them to call, assuming they would have to issue more shares and pay underwriting fees again. But if they do call it, no big deal.

    1. NRZ-B dropped to 25.92 not sure if that’s a bargain or a shift to C. I bought some on price movement because NRZ-A didn’t drop.

      1. Took my nickel profit, glad to get anything on a day like today. Used it to bounce into NRZ-C @ 24.71

  51. Sure hope this isn’t you …..

    SCHW-C closed at 26.22 on Friday (went XD the day before). Between now and when it’s (almost certainly) called on Dec 1 of this year you will collect $1.13 in dividends, for a grand total of $26.13, a loss on the deal of 9 cents.

    Low rates is one thing. This is called lending money at negative interest rates. Anyone wanting to do so please contact me to discuss a loan.

  52. Dividend capture ideas for late February. Most are priced very high or callable now. Adds a dimension to the div capture strategy.

    NLY-F NLY-I NLY-G. the old warhorse. low rate, reasonably safe.
    CIM-A thru CIM-D. popular high rate high priced reit.
    PMT-A PMT-B MITT-C. more high rate high price reits.
    MITT-A MITT-B. callable now. Do you feel lucky, punk?

    IPLDP new forum favorite.
    NGHCZ COWNL COWNZ. still hanging on.
    CTBB CTY UZB UZC. rapidly changing telephone sector
    SCA Stellus
    SF-A SF-B low YTC.
    CIT-B issues credit cards for Fidelity and Ameritrade customers
    WFC-various. low yield. WFC-T partial call (80%)

    and several others not worth mentioning.

  53. Tried my first time at dividend capture. Apologies for what are probably basic questions but I want to make sure I got it right. Thanks!

    Scenario – I purchased UMH-D on 2/13. It goes ex-dividend on 2/14. Record date is next day so that would be 2/18 (with weekend and holiday).

    Question – does buying the day before the ex-dividend date count me in for “ownership” for dividend purposes? Or does “ownership” occur after 2 days settlement (which would mean I missed this dividend)?

    Question – is the earliest I can sell and retain the dividend the on the ex-dividend date or the record date?

    1. You are good. You just have to buy before Ex and then sell on Ex or after. So you could have bought yesterday (2/13) and sold today if you wanted to. Just have to wait until payment date for you to see it in your account.

      I think this one goes back to $25 pretty soon but we’ll find out. You could have taken your $0.15 profit or so per share today if you didn’t want to stick around.

  54. Divi capture in reverse ….

    Whoever bought my SCHW-D pre XD on the 11th for 27.00 now has a share worth 26.29 and a 0.37 divi, for a total of 26.66.

    Not so good.

  55. Grid and other ALLYpA experts – should I sell for dividend avoidance today? (It’s in a taxable account.)

    If I do sell, what’s my re-entry point?

  56. Changed my mind yesterday and bought TCO-J at $25.48. Im hoping for flip on sell off from acquisition. Wont stay long, but it looked like a good short play at that price point (but not more).

    1. Grid and others – I put in an order for TCO-J and K at 25.40 the day of announcement and would have bought thousands had they been offered. I got 200. I think it has played out but will hold a while before harvesting my $34 profit.

      Tough way to make a living.

      PS – the merger agreement with SPG requires TCO to redeem the preferred ASAP with merger. Buying the TCO preferred is now a play on when the merger will get done. If you think it may take a while (antitrust?) then you may want to be a buyer of the TCO preferred.

      1. Bob, that was my strategy. I got 500 of them. This was just a sure play nickle grab. May hold through March exD and then exit. If it gets 20 cents above purchase price, I will grab my tax free hundo and leave. 8 cents down, 12 more to go, ha.

  57. Question on OSBCP. If call date is 3/2/2020, it looks like there will be about 60 days accrued interest equaling about $.13. Am I looking at that correctly?

    1. No less than .13237 the way I figure with possibility of one extra day of accrued depending on final math..

  58. My GTC sell on TravelCenters TANNL executed today at 25.90 so it is gone. almost 2% since 1/21. Goes ex 2/13 so may look at it again after ex.

  59. Is anyone playing $GSLD? Or are shippers too dangerous for everyone in this environment? Goes Ex next Thursday (think first payment around $0.55). My feeling is it will either go back to par after Ex or maybe run up a bit early next week. $25.20 seems cheap still.

    1. Still GSLD only slowly creeping up. Didn’t realize they did a $68 million ATM on this issue in late November after the initial $31.5 million or so. Makes it about a $100 million Issue. Assume they have been putting up shares for sale over par and that is why it went lower after rocketing out of the gate and has kind of stagnated a little above $25. Still think it is a nice buy here with Ex on Thursday. Have been buying.

      1. Well GSLD already back to par, that was easy. Should have loaded the boat 2 weeks ago when this was still trading under that for some reason. Sold some of what I hold, will keep the rest for now. Bought more UMH-D, now have full position there. Expect it to react similarly to GSLD but won’t quite be as good a play. B Riley selling ATM shares in both of these a bit over par right up until Ex Date.

        1. Ken, excuse my ignorance, but what is the reason for the ATM selling of UMH-D by B. Riley just before XD?

          After all, they would stand to get more if they would just collect the dividend, and ride the stock back up to par again after tomorrow.

          And are these treasury shares they are selling on behalf of UMH, or stock that they themselves hold as an investment?

          I’m at a loss as to their rationale for this action.

          1. Yeah I’m not sure of the deal B Riley has with UMH on these ATM sales. Maybe someone here knows more on the ins and outs on these. To me it looks like they are just trying to unload them now while they can get over $25 and with high demand for them due to the upcoming dividend. It’s exactly what they were doing with GSLD. You can tell because as soon as you put a limit price of $25.05 you automatically get filled. Been like this for days it seems by looking at the chart, must be the magic number. Volume is too high in this Issue lately to suggest any other reason. They have the ATM and are clearly using it.

            B Riley probably wouldn’t collect the dividends on the shares themselves as they are just the facilitator here. But again someone else here probably knows the ins and outs on these better than I do. I just play the game to my advantage when I clearly see it.

            Best guess on my end is if market stays fairly status quo, these will push back to to the $25 level fairly soon. May take several weeks, I’m willing to wait.

      2. There’s no guarantee the dividend capture will be profitable.
        Large institutional trades are often triggered by factors other than squeezing every dime out of it.

          1. Martin, I also like where the C Issue is trading in relation to the D. B is going to be called in 9 months, so take that one out of the picture.

            Inspbudget, these guys have a mandate to sell at certain prices etc. Who knows, the Coronavirus could take over the world next week. The risk is a lot more real to them than it is to us small-time retail buyers. No need to get too greedy.

            1. Well, I’m in the same boat as you and others here – bought a couple hundred shares of UMH-D yesterday at $25.04.

              Will watch the price to see how it behaves over the next few weeks.

              My investment is not huge, so willing to hang onto the shares for however long I want.

              1. Yeah, the Apocalypse will probably come at some point. Hopefully I’m not stuck in a div capture when it does.

  60. Hi all–I see MNR-C is spiking a bit today–last trade at 25.59. Is this one that everyone is holding long term – or is it a flip or capture for you?

    1. Tim – I’m holding long term. This could be held through a recession. As you know I trade Spx for alpha. ATB.

    2. Tim, I just flip this one often. I got my 41 cents for a quick 2 week hold. And then rolled it all into UMH-D for its divi. Considering C is up 13 more cents and UMH-D just 3 cents. I would be a dime better holding on!
      MNR-C is a fine hold though. But I liked MNR-A and B better though, ha.

      1. Grid–just went back for another bite of UMH-D–3rd time–I’ll have to be careful or I’ll end up with a 1000 shares like you.

        1. Tim, I did worse, I went ahead and eventually threw the entire 2000 share MNR-C kitten caboodle at UMH-D. That is why I dont want to hang around at this UMH-D party very long. It was always fun and easy with UMH-B a while back, but its dead man walking and I dont know when it will go exD and not recover. Its too late in the game to play with it anymore.

        2. Tim, I got cash sitting also. Sold off my LANDP at 26.05. Had a little fun with that one. Bought at 25.70 a few weeks ago, flipped most at 26.05 also if memory serves, bought back last week at 25.80 and flipped again today. I probably will have to wait to this 3 month cycle to play out and get some nervous call risk sellers to come out before next 3 month divi declaration cycle.

        3. Now I’m in on the UMH-D bandwagon. Because I didn’t find any other mid-Feb div captures I liked. Expecting a relatively small gain with not much downside.
          Late Feb is shaping up nicely with NLy CIM Mitt preferreds, among others.

    3. I bought for a divi capture but sold today for a .42 gain after two weeks. Would like to get back in, maybe on ex-div day on the drop.

      1. I sold a partial and will keep a partial–47 cents in a few weeks was too good to pass us.

    4. Tim- I think you’re moving markets. If you say you’re going to flip, it’s going to slump.

      I’m holding on tight as there’s no where to go.

      1. Hster – I agree with no where to go. The yield on 10y. Is basically at a triple bottom from ‘12. As a chartist I don’t trust triple bottoms and sometime in the future, (recession), we will break lower possibly below 1%. ATB.

        1. TimH–I just let a partial go–holding some longterm. Bot some UMH-D which goes ex next week 2/14. Then may reenter MNR-C depending on how it trades. The 47 cents in a couple weeks was too lucrative to not bank some of it.

        2. TimH-
          Recession->more defaults->liquidity dries up->sell off. Low fed yields won’t matter if bond/preferred prices tank? Nothing- equities, bonds, preferreds, reits, munis, gold, crypto makes me feel warm and fuzzy right now.

          Tim- Thanks for being so candid. My biggest regrets last year selling for “derisking”- cautious personalities like me got punished last year while risk-takers got paid. I sold DTP at par having bought at $49.20. Now @51.60… I bought some nice Lagavulin/Talisker/Ardbeg for my husband with the proceeds.

      2. Hster–I think I am going to let 2/3rds go and hold 1/3rd through ex and move it to UMH-D for another capture or flip.

    5. Both. Sold half-200 shares. That’s the way I ve been playing these. I ll try to buy back later if it drops enough

  61. WFC-T Callable 9/15/19, 6.0%, Redeems on pay date only (3/15/20) with 40 days notice. I have seen no notice and hopefully there isn’t one. If I did my day count correctly this will not be redeemed on 3/15/20 and thus guarantees at least 2 more full dividends until the next possible redemption on 6/15/20. I bought at 25.44, so if this redeems on 6/15/20 and if I did my math correctly this would be a 30 cent gain and a 3.3% annualized guaranteed gain. Better than a MM.
    2WR – check me out. This looks like your kind of trade

    1. Pete – a quickie look at quantum says you’re right about surviving to 6/15/20 at least. The downside of that is that if you buy now, you’re only entitled to the 6/15/20 divvie theoretically… Quantum says “paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date that will be the last business day of the month prior to the payment date or on the record date fixed by the board.: So without personally checking whether or not WFC has actually already declared 3/15 or not, date of record would normally have been 2/1 for 3/15. They do have that out written in saying”or on the record date fixed by the board.” So if you’re right it’s not been declared, then your math looks about right to me at 25.44

      1. Interestingly, based on Yahoo finance historical info, WFC-T’s dividend was declared on 2/27 not 1/27 as the language seems to imply, so it looks like you should be good to go till 6/15.

      2. Hi 2WR-
        Thanks for your reply and quick math check. I don’t think WFC has declared yet. I was just adding 3 mos to Etrades last Ex Date of 11/27/19 for the next Ex around 2/28/20.

        1. Pete – another dumbo quick assumption on my part… OF COURSE x-div should be late Feb, not late Jan for 3/15 dividend… All’s good in the world again….

          1. Ha, thanks for your post and Grid’s explanation of depositary shares. I truly have learned to value both of your opinions!

    2. I thought 30 days was normal for announcing a redemption? But I see this in the prospectus (page 62):

      Unless the applicable prospectus supplement specifies otherwise, we will give notice of a redemption by mailing a notice to each record holder of the shares to be redeemed, between 30 to 60 days prior to the date fixed for redemption, unless we issue depositary shares representing interests in shares of preferred stock, in which case we will send a notice to the depositary between 40 to 70 days prior to the date fixed for redemption. We will mail the notices to the holders’ addresses as they appear on our stock records.

      Were “depositary” shares issued for WFC-T?

      1. Hi Ken-
        The prospectus supplement states on S-17 and S-18:
        If we redeem shares of the Series T Preferred Stock, we will provide notice by first class mail to the depositary not less than 40 days nor more than 70 days prior to the date fixed for redemption.
        I think I am understanding it correctly to require a 40 day notice for redemption, but I am certainly no expert. Perhaps others with more experience would chime in.

      2. Ken, you would be surprised to know a good many preferreds are depository shares. And yes this issue is one also… There is an accounting gimmick behind why its done…See typically we as investors say “$25 par and redemption” issues. Most times par is $0.00 or $0.01. And many preferreds arent even $25. Take this one. Its actually a $25,000 preferred with a $25,000 redemption or liquidation value. After this $25k preferred is created it is then sliced into 1000 “$25 depository shares”. Technically the $25k preferred is announced for redemption which then triggers the $25 depository shares to be redeemed in kind.
        Why? Accounting reasons. Most companies have an absolute limit on preferreds they can issue without voting to create more. They dont assign a momentary limit though. So they can issue fewer $25,000 shares to keep the share count down and under their imposed limits. The $25 depository shares amounts do not count against the board authorized limit.

        1. Thanks Gridbird for the explanation. Guess I sold too soon. Hopefully Pete is enjoying my shares.

  62. A dividend capture opportunity to consider: NTRSO’s initial dividend will cover the extended period from November 5, 2019 (IPO date) through March 31, 2020. For this reason, the $0.4765/share dividend will be at a premium to the future/regular scheduled dividend of $0.2938/share. The ex-date is 03.12, pay date is April 1.

    https://www.sec.gov/Archives/edgar/data/73124/000119312519279087/d805721d424b2.htm

    An upside to this capture is that if you get “trapped” in the trade, there are worse places to be than this BBB+, QDI issue that is call-protected until 1.01.25. NTRS itself carries an A+ rating with debt/equity around .20.

  63. GECCN selling 10 cents lower than GECCL despite having an extra month of accumulated dividends baked in. Good swap for those trading GECC preferreds.

  64. I went big for me on a divi flip capture play last week or so on MNR-C, at 25.02. It jumped above my goal so I sold half today. Used proceeds to buy some UMH-D. It was a close call on which to have bought and fortunate I went the MNR-C route instead of UMH-D. But Im gonna give it a chance to shine also. This one is more doggy in price movement so my goal will be just a quarter here.
    Would like to sell rest of MNR-C since its just flipping money, but not finding a home yet so I will stall just a bit on the rest.

    1. Got in at a slightly higher price so have a full position 1.4% gain right now–I think it may have a little lift left in it with 10 days to ex. Thanks to all on this page who pounded the table on this one.

      1. Tim, I still got 1000 of MNR-C. But very tempted to dump it and buy more woof woof UMH-D that I just bought today and see if it can get off the $25 floor mat and reflect that divi into the price….and then get out!
        This has taken me a few weeks and meaningless to flippers but I was finally successful. Was able to move a corresponding amount of SOCGP from $32 to 32.25 and essentially replace it with same amount of sister SOCGM. SOCGP is the Preferred Series A and SOCGM is the Preferred Stock. SOCGM is also 6% par and uncallable but I replaced at lower prices of $30.50 up to todays $31.99.
        So here I lowered the cost basis a bit (not really because I had $3 plus cap gain hit on selling SOCGP) but got into a tinier float which I prefer. SOCGP has 783,032 tradeable float (which is illiquid in itself) but SOCGM has only 28,041 tradeable float. So I have over 3% of the SOCGM float now. This one traded above $32 all last year basically (when it traded, when SOCGP could be had at $28-$29). This is why I like very illiquids. Oddly enough there are still some shares for sale at $31.99. I dont consider this a great price, but it allowed me to clean up the rest I needed and selling SOCGP higher gave me the faux justification to get it all wrapped up.

        1. Grid,
          Why does So. Cal. have both socgp and socgm, and what exactly is the difference between socgp and socgm?

          I understand one is series A, the other is the preferred, and that they have different number of floats, but besides this, could you explain to me what is the point of having both (besides allowing you to trade them)?

          Thx!

          D

          1. Dan, absolutely no difference, other than either they were issued at different times or to different entities at the time. I have read in their SEC filings these two preferreds take the top seat in preferreds in terms of payment priority (which means little as if a ship sinks it all goes down). There was a 7% ish preferred that sat behind it, but it was redeemed long ago.
            SOCGP the Series A, has a trading float of 783,032. Basically the whole float available. SOCGM, the preferred stock has a float of 79,011, but now only 28,041 shares are tradeable. The others were reacquired, retired or whatever, but they are not available. This is why it over time doesn’t trade as much. It almost has traded as much in this past month than it did the entire year last year. But your not going to get much action year to year on a 28k float, as many of those probably are not even looked at anymore and just held indefinitely. You know, like someone is supposed to do with a preferred, ha.

              1. Dan, this is just my personal preference, but I love the small floats. They can be squeezed at the right time. This is one of the few times I saw at market close that bids for SOCGP were higher than the ask of SOCGM. Over time SOCGM has proven to trade higher. Look at the 5 year charts. This is pretty standard with tiny float issues. But, one may need liquidity and SOCGP would provide that.
                Neither are deals in my book, but I am committed to having this noncallable in my permanent drawer, so I just switched to the issue that is my preference.

        2. I added a little more UMH-D last week–am surprised it can’t get above 25.05 with ex just 10 days ahead–maybe it will spike in the next few days.

          1. Tim, yep its a woof woofer. But I am also hoping for something to breath some air into this dead stock also. I will give it a week after exD to make it work, or out the door I go. MNR-C was at same price at UMH-D was two weeks ago. And unlike the ugly sister company, MNR-C followed the rules and jumped its divi plus a bit more. I unloaded them all today at $25.44 two different times today. That seemed about its ceiling today.

          2. Well it’s up from the 25.03 I paid so I could take my 2 cents or wait. It’s a decent dividend so looks like I’ll be taking it.

            1. danzeb–If it doesn’t spike I will be holding it right through ex and then waiting to see what it does after–I really don’t mind holding this one longer term.

            2. Danzeb, I didnt mean to imply its a bad hold or the divi is not safe. I bought it specifically for a hot flip since it was near par. MNR.C has a more defineable trade pattern. UMH-D not quite as apparent. But Im reasonably sure a quarter can be squeezed out for me either days before exD or a few after.

    2. Hi—-new to the area of flipping to capture the dividend. Do you have your own watchlist with the stuff you like to follow, including there dividends, or do you run a scan regularly in your brokerage account, or do you have a paid service that regularly updates price and dividends. thanks for your time

      1. I have a short watchlist of stocks I trade frequently. Followed by a variable length watchlist of stocks I’m currently trading or actively looking for an entry point. Then a longer list I follow waiting for opportunity to strike. Edit frequently, especially those that are dividend captures. Custom build the columns of the watchlist, though dividend isn’t on there I just remember them. And I do scans research and reading all the time.

      2. Joe, A question you did not ask but I’ll stick my nose in anyway regards “what issues”. Overall, they should be issues you’re comfortable holding, that you might have bought anyway or are at least a contenders for holding. There are many factors which could interfere with a well-planned divvy capture. If any go awry, you need to be able to shrug your shoulders and carry on.

        1. I’m not comfortable saying “they should be”. So when reading please replace that to read “suggest they should be”

    3. Given how expensive this market is Grid, I’m glad UMH-D has sat here and given people a chance to buy. I wouldn’t be surprised if it is at 25 a week after x. Unfortunately, I missed MNR-C. I have to pay better attention!

      1. Kapil, I agree, and it appears that scenario to be my best shot to get what I want out of it in the time frame I am willing to give it.

    1. Yes bigbear I do–I see it has a reasonable gain, but maybe we will see some more prior to the ex date–maybe it will make a little run right in here. I would think if it hits 25.80-26.00 I would be out.

  65. I had bought a full position in the Wells Fargo WFC-Z 4.75% perpetual that just came out–I paid 25 and let it go at 25.22 today. I thought it would be a hamburger steak type trade so I am happy. These low coupons issues are not trading all that well.

    1. Hi Tim, Considering JPM-J is at 25.77 after ex-div yesterday, isn’t it worth holding on to WFC-Z little longer esp. for it to go to NYSE?

      1. Hster–I could have held and technically they should move higher–BUT WFC has a bit of a stigma attached now and I don’t think they will trade with JPM. Too late to change as they are gone.

        1. WFC-Z 25.56 today. Just a big smile today that I made more money than the master! (Sorry.) I’m going to buy my husband some 20yr scotches if I sell.

          1. hster–good job–but I am no master for sure.-likely if you see me sell a flip there is more to the upside to come.

  66. Can anybody explain to me why BANFP at almost $28 has not been called?
    Who is buying at this price and why?

    It is up >1% today, should it be sold? Yes, I know, and then: “nothing to do with the cash”, but still, with a $0.45 quarterly dividend, there is a huge call risk, no?

    And in general, I wonder how come there are so many callable securities trading dollars above par (like AILLL@$27.5 , CNLPL @ $60!!!) …. What I am missing here?

    1. Dan, those are below par compared to HLM-. Its past call, $25 redemption value and is trading at $35. How about a piece of that action! 🙂

        1. Dan, I looked at it long ago at $29 into the SEC from acquirer and its still callable. If I passed then from fear, $35 is way out of my league, ha. BANFP holds a special place in my heart. For several years it was clockwork..Buy at $26, flip at $27. Rinse and repeat. Needless to say since it is this high I am not in it…ASRVP was another beat it like a step child bank trust. Buy in $27s and sell in $29s. But it has a shorter duration maturity and is becoming short term high interest debt. So Im not a player here at current prices either.