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.

393 thoughts on “Flipping and Dividend Capture”

  1. 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?

  2. 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.

  3. 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?

        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

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

  5. 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.

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

    Next week. MFO Monday
    FHN-C. I like FHN-B better, 6 month payer.
    GFNSL. can get better rate from GFNCP

    Coming late October
    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.

  7. 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.

  8. 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
    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.

  9. 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…

  10. 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.
    PRIF-A thru F
    PLYM-A STAG-C IRET-C. High price.

  11. 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
    SLMBP (Sep. 3)
    Multiple bank series from ASB-, CUBI-, WFC-

  12. 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.

  13. 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.

  14. Some dividend captures for Thursday Aug 13

    ABR-A, -B, -C

    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.

  15. 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.

  16. 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.
    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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. 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.

  22. 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?
    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.

  23. 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.

  24. 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.

  25. 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.

  26. 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.

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

  28. 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.

  29. 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.

  30. 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

  31. 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


  32. 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!

  33. 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

  34. 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.

  35. 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.

  36. 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.

  37. 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.

  38. 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?

  39. 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.

  40. 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..

  41. 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.

  42. 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.

  43. 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

  44. 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.

  45. 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.


    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.

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

  47. 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)?



          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.

  48. 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.

  49. 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.

      1. My wife had that one in an inherited account a few years ago. I told her to sell it because of call risk. Don’t listen to me.
        FIL thought it was a mafia front but I’m not sure why.

  50. I let go of my CODI-C 7.875% which I had posted here on 1/13/20. This was just a capture–I don’t like MLP preferreds as they generally don’t trade well.

    I bought at 25.78 and sold at 25.75—captured a 38 cent dividend as well so a 35 cent gain in about 2 weeks–1.4%.

    Will have this on the watch list for next quarter.

  51. I couldn’t resist adding some more of the UMH-D 6.375% preferred–had a full position, but it traded around 25.02 today and goes ex on 2/14 weeks for almost 40 cents. This issue should move higher.

    1. Tim, any thoughts on why it’s pinned to par with such a good amount of time before 1st call? I need to look at the financials.

    2. Seems like a good idea to me. The yield to call for UMH-D is much better than their other two issues

    3. There’s 50 shares sitting in an account I don’t remember buying. So I added a little more. Manufactured homes may be somewhat recession proof when people can’t afford more costly homes.

    4. Picked up some at $25.02 as well. Thanks. BTW, how does one actually create a message as opposed to replying to a message? This is a great site. You have made me a lot better off.

      1. I picked up a few hundred shares of UMH-D when the price took a dump in the last few minutes of the day. Got them at $25.01. So now I’m a member of the club.

      2. David P–go to the very bottom of the page and from there you can start a new topic.

  52. Someone bought my CBKLP this morning at 104.90 and I bot it back at 102.25. I hope it wasn’t anyone on this site!

    1. Good for you Kapil. I saw that trade and then tried to undercut and sell some at $104 after that…A true bargain, ha. But no fools for me, and the bid returned back in the regular zone.

        1. Kapil, it does happen every once in a while…So I dont know why I am so lazy not to put up a long term shoot the moon ask, and see if some fool and his money dont part to benefit me. Excellent move. And the good thing was you got them back with no harm or foul. Just some profit!
          I will have to use another ticker though as Martin and Bob are circling like vultures already! 🙂

          1. You’ll have your fill of CBKLP before it reaches a price I’d pay. I’m a bargain vulture.

            1. Martin, Im talking about selling CBKLP, not buying. I have no problem selling at $104 now, ha.

    2. If there are any more buyers for CBKLP at 104.90, please contact me. Bring the pick up truck.

  53. Want a mini-flip with your loose cash? JPM-H at 25.90/91 ex-div next thursday callable in september. Won’t go up much but unlikely to drop either. Maybe pick up 5 or 10 cents in a week.

    1. Hi Martin,
      Could you explain why you think you can pick up .05-.10 in 1 week?
      The div. next week is .385; isn’t it likely to drop from 25.90 to close to 25.51?

      Is my arithmetic wrong?; if bot now and held until it is called in Sept. then you can pick 3 divs for a total of 1.15, which will give you 25+1.15-25.90 = 0.25 profit if called in Sept, which is a bit > 1.0% anually.


      1. Dividend earned minus capital loss = small profit (hopefully). I won’t keep it until september, that’s just info to evaluate the price.

        Been trading in a tight 10 point range. I’ve been buying near the bottom of that range and selling near the top. Compound gains if it stays in that range. No guarantees. NLY-G is slightly worse and has been trading a couple points higher, that’s one of the things I key off of.
        Dividend capture just adds another variable next week.

  54. RCB was up over $28 a couple weeks ago and is now trading near $26

    USB-O is off a dollar from recent highs

    I am thinking of putting in a lowball bid for both

  55. CORR-A had a dividend announcement and no mention of a call. I’m long at 25.45 for a dividend capture trade.

    1. Thanks for the tip kapil, I will buy some.

      I see their 7% senior notes that mature on 6/15/2020 recently traded for $140!

      How does this happen? That’s a -66% yield if someone were to buy today for that price….

  56. This is slightly off topic but ORCC has gotten beaten down since the last dividend. I just bought some and am looking to sell around $18. Fundamentals still seem okay.

      1. Max, type in the ticker in Tim’s search box the second one (under the parent search) and you will find a decent amount of info. I owned (if memory serves a few hundred at $24.70 and a slug of them at $24.50) and already flipped out of them all. I starting exciting a bit at over $25 and the rest by $25.40. I just did a shameless quick flip. Interesting tidbit…The preferred is from the bank and not the holding company (MFIN) that owns the bank. Interestingly I read the hold co has not extracted a dividend from the bank since 2016.

  57. I bought a position in TravelCenters 8% (tannl)–probably just a dividend/interest capture–we’ll see. Not ex until 2/13. Otherwise I will just hold it.

    1. I’ve owned that one off and on. Combination of div capture and hold a small amount. Always makes me nervous though it’s held on for a number of years.

      1. Martin G–I held it years back but it is so poorly managed that I exited. Now they are making moves to actually make some money so I have a bit more comfort.

  58. There is a 1040 bid right now for SLMNP if anyone is considering selling.

    I sold 13 shares today

  59. If it was only this easy every day. Sold PLYM-A 2 days ago at $27.06 for a quick buck a share gain. Got 400 of them back today at $26.50 and next trade after mine was $26.99. Should sell again, lol.

  60. Today I have an order in for LMRKO–Landmark Infrastruture 7.90% preferred units. Will go ex on 1/31 (although they haven’t announced yet) for almost 50 cents.

    Now trading at 25.65–not callable until 8/21.

    This is a MLP so it will generate a k-1—so I am not anxious to buy really so will have my order in at 25.65 but won’t chase higher.

    1. I’m new at this, and really appreciate your site! Is there a downside to a k-1 Issuer if you have it in a non-taxable account? Thanks!

      1. Welcome, Irish… For the most part, I now only keep my K-1 issuers in IRA’s (non-immediately-or-never-taxable-accounts) because I grew tired of screwing with the K-1’s come tax time – which are a nightmare if you are a flipper or have almost a dozen to deal with like I am/was. Ask 5 people their thoughts on this subject and you’ll get at least 12 right answers. Boils down to a personal preference with lots of mitigating factors. Here is just one article you can checkout if you find it handy… It dives into the topic.


        You can also type into the search box, something like “MLP IRA” and you’ll get a whole list of articles to browse that cover this topic.

        However, here is one big downside – to directly answer your question. If you incur losses on your investments and they are in tax advantaged accounts, you’re not able to deduct your losses and have those losses offset your taxable gains like you could if they were held in just a regular taxable account. So you’ll eat the whole mistake if you make a whopper of a big one….. speaking from experience… but investors in the MLP space usually take a number of these straight into the teeth over the course of their investing ‘careers’ when one or more go bad on you or you hold on too long when things start to go bad.

        1. Sorry A4I – but IMO that is an ill informed article. I say that because it excludes any discussion of UBTI and recapture of depreciation / depletion when you sell a MLP in your IRA. This recapture upon selling is the biggest potential generator of UBTI and can result in a tax bill to your IRA

          That said, I too hold the handful of MLPs I own in my IRA because I don’t want to deal with them in my taxable account. But I used to own a lot more MLPs and scaled back because of the tax implications when selling them.

          these are better articles that discuss the tax implications much better




          1. …This is why I refuse to participate in the SA bloodsport on this topic anymore. Will apply the same logic here moving forward.

            1. Well sure, some SA debates can overdue things but I am not sure that making sure things are accurate and not missed qualify as bloodsport. As long as the debates help educate people on the facts, we all benefit.

              To me accuracy is always important – and in the case of MLPs and IRAs, it is important that people understand the rules of UBTI and recapture of depreciation / depletion when you sell a MLP in your IRA. Far better to know up front before you buy so you can make an educated decision than be surprised down the road

      2. Irishrose441–I see A4I responded and I will leave it at that. For me I don’t mind getting them, but I know some really hate them.

  61. ok–I took a number of actions today. One is a pure flip–the other which was going to be a flip took a full 3 months to play out (much longer than I had hoped)

    Remember when the Highland Income Preferred 5.375% (HFRO-A) fell 3 months ago on news-shares fell as low as 24.56. I bought a full position at 24.72. Today I let it go at 25.64. I could have let it go sooner, but glad I didn’t as I got 92 cents plus 1 dividend–so over 4%. As always happens I see it spiking 20 more cents right now.


    On 12/27/19 I wrote an article on Priority Income Fund preferreds–they were being dumped.


    Anyway I had a position in the PRIF-D issue, but took a full position in PRIF-C that day at 24.70. I let it go today at 25.19–so almost 2% in 3 weeks. I still have the PRIF-D.

    I have been studying the Compass Diversified 7.875% preferred I mentioned a few days ago CODI-C. I bought it on 1/9 for 25.78–it moved to 26.04 yesterday–went ex today and is trading at 25.80. It was ex by just a partial dividend (38 cents) as it is a newer issue–so am up 40 cents since the 9th and may exit anytime now–but actually I would like to squeeze out another 10 cents–famous last words–I don’t really like MLP preferreds.

    1. Tim, on golf course, I let go of my PLYM-A. Bought a couple weeks ago at $26.06 and flipped at $27.06. Would like to get back in it again, but needs to be cheaper for this mediocre infant industrial reit.
      I bought PRIF-A around 24.60 when you mentioned them. I suspect I bought A over the others because I didnt want to remember the rest of the alphabet to compare the choices. I think I am just going to hold for now.
      My ALLY-A “CD” is maturing on que like every quarter, so I will be redeeming it soon at “maturity”. I noticed LANDP finally declared next 3 divi’s today. So this will probably be flipped soon as it should drift towards $26 pretty quick Im guessing. If not I can hold, but I got a boat load of it an ALLY-A so my preference will be to sell some soon to get ready to buy something if opportunity presents itself.

      1. Grid–you are a good example of buying and selling based on a pattern versus capture or buying those pegged to $25. Martin G keeps imploring all of us to do that.

        Don’t wear out your welcome on the prif-a, not exactly AAA rated.

        1. Yes, Tim, I have been doing this for years. And you described it better than I did even though its what I do, ha. I dont trade for the dividend, I trade off the movement caused by the dividend. And to best do that one has to buy a different subset of issues. For example you use the call anchored a bit lower yield issues to capture the dividend. I use the higher yield past call issues that trade well above par, that wont “pop” until that dividend gets declared, or the 30 day call window drifts past the payment date. ALLY-A isnt quite there but its a few days away from going past it.
          ALLY-A trades like clock work. Buy about one month after going exD when it sags into the 25.80s range, and then hold your breath for a no call, and let it drift up pennies at a time. About a few weeks before exD it drifts into the 26.40-60 range and you then sell. So usually you get 60 cents holding a month and one can get out. The price for the easy money is of course the more relative penal call risk. But last time they mentioned it, they stated they werent interested in redeeming it. They are interested currently in rolling off an 8% bond this March. Admittedly it is getting harder mentally to pluck down the relative big purchase I did a month ago. But the ol’ gunslinger wanted one more shootout at the OK Corral, so in I went.
          The reason why its so predictable is because it is extremely liquid. It trades daily more than many common stocks do.

  62. Also forgot to mention I took a position in Compass Diversified 7.875% perpetual preferred (CODI-C) @ 25.78. Will go ex tomorrow for 38 cents (partial quarter) as this is a newer issue. Whether I hold it or sell it in a few days or weeks is a function of price movement after ex date. Honestly these MLP issues don’t trade as well as others so I am prepared to hold if necessary–BUT it is NOT any kind of base position–maybe more an act of desperation.

  63. I took a modest position in RILYO-6.75% this morning at 25.71. This one has no call risk in it as 1st call is 5/2021. ex divi tomorrow for 42 cents.

    I don’t know if this is going to be just a div capture or a longer term hold–will see how it acts after ex tomorrow.

      1. Hi Pete–I didn’t want the call risk. While the coupon is a tad lower than some of the others it has been my observation that those near 1st call date MAY (not guaranteed) fall much more than the ex amount tomorrow.

        For instance the 7.5% RILYZ issue could fall 55-70 cents as folks know it may well be called in May–and then the price would move slowly higher as interest accrues. The O issue will fall the ex amount and has the ‘potential’ to bounce back faster as there is no call risk in the near future. These are just my anecdotal observations–and given the irrational movements of late in similar issues who knows for sure. I forfeit a nickel of interest but if it bounces back quicker OR falls less I am net ahead.

        1. Gotcha and thanks so much for your detailed reply. I love getting many different perspectives, especially from those of you who have been trading preferreds for many years.

        2. I bought RILYZ. I typically buy the higher yield because they won’t fall as much in a downturn. A different form of loss prevention.

        3. Oh, please do drop 55-70, RILYZ…. I’ll welcome that and I own it….. As per normal, I go the other way and want to take the call risk because I’m willing to accept a great YTC as my return yield if that should happen. If it happens, I’ll add more.. Given RILY’s reluctance to call RILYL immediately, I’ll take the gamble of a YTW calculation… To me it’s another way to look at an alternate investment for maturing KYN-F.

          1. Given my low entry cost and their delay in calling RILYL, I am going to continue to hold RILYZ. 7.5% preferreds are hard to find these days, and there is not a significant capital loss if called. Will probably buy more if there is a 50 to 60 drop.

    1. I’m trying the same with RILYP. I got in today at 25.53 and hope this turd doesn’t go belly up before I can flip. Also have buy order for RILYN if it hits 25.41. BTY, your site is the best.

      1. Well Hank, you arent the only one. I had a bit of cash sitting with nowhere to go past week so I just dumped it into 200 shares of RILYP myself at 25.52. Probably will just hold and not bother with it since its just 200 shares.
        I had an incredible flip month of December leaking over into early January. But a few weeks ago as the flips got sold, I couldnt find anything in my rotation list to buy and flip as a replacement. So basically my flip money has been moved past few weeks into time out plays of dividend captures. I usually trade for price movement flipping not dividends, but I am trying to take what the market gives without too much undue risk. These shares will just sit here until I can get some price movement worthy of a flip.
        This is pretty normal occurrence for me over time…Issues bought a few weeks ago such as ALLY-A, or more INBKL, and CBKLP again become longer term holding tank issues until I can get some volatility again to create a flip opportunity from other issues.

      2. Thanks HankLA—I think you will be fine–someday we will all have to work harder to make return, but for now a dart is mostly successful.

    2. Tim,
      I too took a flip position in RILY but I chose the P issue as it has a higher current yield and its a new issue with lots of call protection. In addition, I took a position in 7.375% CORR-A purchased at 25.58 which is callable 1/27 but I don’t think they’ll call before the next ex-div date (~2/14) as they don’t look to have enough cash to pay off the preferred and I don’t see them coming to market with a new issue until full year financial results are disclosed at the end of Feb. Also took a flip position in new issue UBP-K with a 1/16 Ex-Div but I think the price will recover quickly, OK to hold this one if price does not recover.

      1. JDC–right now I like the UBP-K and may buy after ex—again. I had it from 25.35 to 25.73 10-11 days and let it go last week. The RILY issues – hope there is something there for both of us–no real right or wrong issue on them, although you chose the preferred instead of one of the baby bonds–it may well bounce back stronger than the baby bonds only because preferreds generally have more movement in price. CORR isn’t on my radar and haven’t followed them at all–will see how it trades after ex–if it traded in the 25.10 area post ex would maybe be a good snag to get as it should be tied to $25 only accruing dividends without a crazy bounceback.

  64. RE: KYN-F – It seems to be tough to calculate accurately what it’s supposed to be worth right now… Is it a hold to maturity of 4/15/20 or a sell today at 25.12 bid -25.13 asked? With Monday still being the last day before x-div I think, you still have 3 monthly payments of .07292 coming for a total of .21875, BUT you then also have a 1/2 month payment due as well since payments are made on the first of the month but KYN-F matures on 4/15/20. That’s an additional .03646. So there’s a total of .2552 in divvies left. Tough to use a bond calculator to figure exact YTM on this but my gut’s telling me a sell at 25.12 is the way to go but one way I calculate YTM I’m coming up with a 2.52 ytm, so ……… I know there’s others still in KYN-F – what are your thoughts? how exciting! More potential cash to deal with…..

    1. 2WR,

      I’m sitting on a full position of KYN-F, with a cost basis exactly at par.

      To me, it is the best option to hold till maturity. Unless KYN-F goes above the sum of par + dividends, it is not profitable to sell and leave money on the table.

        1. They’d still have to issue a 30 day notice so that means they wouldn’t call until about 1 month before maturity… Slim but possible chance they’d bother with whatever the redtape is involved for a 30 day savings in interest (aka dividend) savings….

      1. Inspy – Well there is the call risk theoretically as 720cap points out and if the true ytm is anywhere around 1.70% or less as opposed to what I thought might be possible, u can sit in MM and be done with it…. I’m not sure how to figure YTM accurately in this case and came up with a possible 2.52% using a theoretical zero coupon… I think that overstates the yield and probably by a significant amount… Generalizing, price to call on called bonds has been discounting payout at call date by about 2 cents per week, slightly less. KYN -F at 25.12 is about 10 cents net for 12 weeks if I’m figuring right.. If you made KYN-F as maturity 4/1/20 I think you get YTM stripped on Monday to be 1.81, then you’d get 3.50% ytm for the last 2 weeks on a calculation, so probably real YTM is around 1.90% not the 2.52% I mentioned… all boring stuff I realize…….

    2. 2WR–I have a hugely overweight position which I have had hanging out there with a 25.20 gtc sell. I think I will let some go if I can get the right price – edit –tomorrow as it is ex tomorrow–will probably just let 1/2 of it ride–unless someone foolish want to take me out at my gtc price.

        1. Yes–I will look at a change after ex tomorrow. I have had the 25.20 for a month or two–no suckers took me up on it.

  65. Anyone holding PSA-J (4.7% coupon) may want to ponder swapping to PSA-K (4.75% coupon). Their respective first dividends should be prorated. The difference in first divys is about $0.11 higher for PSA-J. But PSA-J is trading about $0.35 (and sometimes more) above PSA-K.
    GGT-E and GGT-G have same coupon and pay dates. The first dividend of GGT-G should be slightly fatter yet it has been trading lower.

    1. Bought GGT-G in an IRA and in a taxable account. The first is to flip when the price catches up. The second may hold for awhile, until it’s a buyers market again.

  66. I just let my UBP-K 5.875% preferred go at 25.73. Bot 12/26 for 25.35–so 1.5% in 10 days. Goes ex 1/16 so may re-enter after that–we’ll see.

    1. If not mistaken, UBP-K has not yet paid a dividend. Instead of normal dividend of $0.3671875, the first dividend is prorated to $0.4896. XD is Jan 16; pays on Jan 31. But I may be missing something (would not be my first time).

      1. aarod–I didn’t even check, but that means maybe there is a bit left to the upside.

    2. Good to know the ex date is close. I had a partial fill to sell at $25.75 last week. I got in at 24.90. I too would look to get back in after the ex date.
      I think I learned about this issue here so thanks.

  67. Rung the bell today on 500 shares of SLG-I at $25.85, I purchased this week at $25.35 blend. Still have kept some. This could have been bought at this price, pre exD a few days ago. Amazing how these things trade. Continued drawing down more of my MBNKP shares at $25.40 and $25.37 today. Bought at $24.50 here. This issue was alway bought for flipping purposes only. Still hold some shares here but down to a modest level now.

    1. I too range the bell this morning. Sold half my position of BACPRB:
      Paid $25.09 Sold for $26.69. Sold half position of NRUC: Paid $25.09 Sold for $27.70
      Kept these for a long time, but wanted to start the new year out with
      some good profits.

      1. Nice work Bigbear – one of my biggest mistakes last year was selling NRUC for about 26.

        I’ve got to learn not the ring the register too fast on the good ones.

        1. Jacob–you can’t look back or we will all feel foolish as these things just go higher and higher.

      2. More bell ringing Bear, ha. Sold the rest of SLG-I at $26. It could go back to Oct peak and thats fine. But a $1 above call, just starting next cycle, I will take the 65 cents for 2 day hold and move on.
        More bell ringing…There goes the last of my MBNKP at 25.54. It may get to $26. That is fine. I got my buck and moving on!

    2. Well Grid, you certainly did better than the divi payout, although that wouldn’t have been bad.

      1. Mikeo, I really didnt think it would pop back this quick after a volume dump. The terms itself are actually favorable quality and yield wise. But, to be honest I wasnt really watching it pre exD, so it wasnt like I was looking for a better trade price as I wasnt even looking, ha.
        But the reason I largely sold a bit over half is the fact its price recovered so quickly, and basically is 2 dividends above call price now. And they never declare dividend until a few weeks before exD. So one is left blowing in the wind on a past call issue the entire divi accruing cycle process.

    3. It is interesting. Many preferreds have been rocketing higher of late and just as many are barely moving. Not sure why but I have some of both and have been selling into strength. My cash balance is rising quickly but that may not be so bad…just look at the prices in December 2018 to see the downside risk.

  68. Bought some RILYN today at 25.23. Ex Div is 1/14/20. Closed at 25.30. Stripped price at close is 24.95. Wide spread in YTW for the B. Riley family ( I came up with about 6.0 for the N, I think Tim’s chart is in error) Maybe a flip opportunity for someone.

    1. Thanks Pete–1) 1 for the idea and 2) for the heads up on the ytw–I corrected it and it shows 5.97% now.

      1. I thank you for this site. I would not be trading in preferreds without it. Also, I thank Martin G and 2WR for their comments on RILYZ. It seems there’s always a different way to look at these flips and it certainly adds to all of our educations, experience, and opportunities.

    2. I bought RILYZ for the div capture flip. Higher yield means less downside if the market turns south. RILYN may have more upside if conditions improve but that’s not my game. Quick gains while avoiding losses.

      1. Martin – I’m with you on RILYZ. Bot @ 25.53 on Tues and then again today when the chance wasn’t there to grab any at 25.49. With call risk holding it down, it still offers up a great ytc and, therefore, also YTM, plus recent history on RILYL tells you RILY’s not necessarily in a big rush to call on first available date… Difference between final maturity date and quarterly payment dates makes it difficult to calculate actual YTM, but it’s probably near 7.40% stripped. Assuming you’re OK with what’s still a generous YTC and you’re OK with RILY, it looks like the cheapest RILY note or preferred out there right now to me.

  69. Sold PPX today at 26.17

    I’ve lost track of how many times I have bought and sold this one.

    There should be a link somewhere on this site to pay Grid royalties

    1. Jacob, glad its working out good for you. I was a bit early pulling the plug a few weeks ago on this for the zillionth time. But sometimes that happens as I needed cash for another flip I had to buy. Im glad you rung the register here. Gotta keep that call monster in his cage and protect those gains!

  70. Scrolling through My positions today And saw AHHPRA was up over a buck and today was ex-div. so I sold half my shares. Should be a nice gain, collect the div, and buy back when price normalizes. Happy new year to all.

    1. Just had a sell order fill at $28.07. Great company but selling like that on ex-div is a New Years present. Put a buy back in at $26.50, now that would be a gift,

  71. For those interested in past call issues, and a modest call risk exposure, one may look at 6.5% at issuance, reit SLG-I to research. This issue outside of 2013 Taper Tantrum has been a relative rock above $25 through the years. I bought 400 today at 25.37 as sells have been dribbling out in 100 share lots but a lot of volume. Just went exD today. Pay date is 1/15, so its accruing next divi being call notice warning would have to be in effect. Its been past call, for a couple years. Its also one of those late dividend announcers, so call angst will always be there quarterly.

    1. Grid–that is one I have looked at in the past–I haven’t done anything as I looked and then forgot–got to make notes. Will look again.

      Did buy the Bancroft Fund 5.37% today at 25.65—trading at 26.16 now. Thought I would hold it, but 50 cents in 90 minutes might be too good to resist.

      1. Sweet, Tim, you know I would ring the bell and cash on that! I saw your post but didnt get around in time to try to get in. I guess I need a reminder pad to write things down. Assuming of course I could remember to look at the reminder pad. 🙂
        I want to ring the bell on my $42 CBB-B buy from last week as it is climbing to 47.50 now. But I have to wait until Jan. 2. I hope everybody else isnt thinking the same thing, ha.

    2. Jacob, I hope it lives on as it has a very stiff pricing backbone. I never do this with crap issues falling, but I doubled down 400 more shares at 25.33. Only 4 cents lower than original buy, but I had to make sure it wasnt the beginning of an immediate call rout dump. It doesnt appear to be so.

  72. Dividend capture ideas for mid-January

    TWO-A, B, C. High price, should’ve bought 2 weeks ago.
    CLNY-G, J, J, H. large REIT, high debt load.
    NRZ-A, B. I trade between these two.
    GECCL. compare price to GECCN, GECCM. different ex-div date.
    SOJA. utility preferreds are solid and boring.
    SNHNI. long history, bad management team.
    CTAA. Century Link has been up and down with breaking news.
    SLMNP. gridbird special.
    AIW. parent company has problems but not going bankrupt next month.

    1. Martin, it will be interesting to see if that dang SLMNP follows its previous quarters playbook and drops to 1015-18 range again after exD. Now I did this last time and it may work again for someone being its a smaller volume hold. If it trades up stiff into exD, you may be able to dump some on exD date or pretty tight after to pre exD. It worked for me on a few. Presently, I just own an amount I am comfortable holding long term so I wont play that with a now reduced position. And basically considering its a $1000 issue the darn thing really doesnt move alot to begin with.
      Its funny, but I have really dont try a true late divi capture much. I dont really have a reason as to why either. I just kind of trade inverse to it. I buy past call issues that dip on a dump during mid divi cycle on call fears. Then I load up and pray for a non call, then dump into the runup pre exD. So some times I dont get the dividend, but sometimes I get the div and sell later. It just depends on its price action and if there is something else more appealing at the moment.

      1. I’ll trade wherever I find opportunity. I don’t understand why dividend capture strategy works, but as long as it keeps working I’ll keep doing it. Higher yielding REIT preferreds seem to do the best. I wouldn’t normally put SLMNP on the list, only because it’s been in the news. our news.

    1. kapil–was just looking at that as tco-k popped as well–don’t know what is up with these issues, but I need to get out of tco-k tomorrow if possible. I actually only have 100 shares left–from a previous play.

      1. You guys might want to replace tco preferreds with BPR close to par. I got some shares today at 25. ATB.

  73. Made the “Do ya feel lucky Punk” trade for a flip buy today…Bought 800 shares total of LANDP at 25.60 and 62 this morning. A couple weeks ago I was suggesting get out of it at 26.25. Its in the dangerous period again where the monthly dividend hasnt been declared yet (they declare it 3 months at a time and its past call). The looming 9/21 maturity is going to pressure this trade more as it gets closer to that date, but this one has been a good one for me over the years, so going into battle one last time.
    They were hiding them early but a bigger ask volume is now showing at 25.60. The call risk CANNOT be minimized on this trade, But if it drops to 25.40 range, I may buy a little more.
    May be good one to just watch and see if it heads lower.

    1. Ha–one of my larger holdings until a week or two ago when I unloaded around 26.25–we’ll see how luckey you are–I notice the volume in the last week or so has climbed–profit taking or someone expecting something to happen. Quite honestly I don’t know if they can ‘refi’ these early–not like the company is a ‘cash machine’ with investment grade financials.

      1. Tim, my main fear is them selling the open till LANDB issue and then scraping funds from there to redeem. But they appear to be using the proceeds when received for their acquisitions. And technically they dont have to redeem immediately at maturity if they want to pay the penalty premium.
        I have recently moved back into the old gunslinger safety flips. I do this when I find things unappealing…Been recently loading into ALLY-A, INBKL, EP-C etc. type to hide my flip money until a compelling value pops up.

        1. Grid – But that LANDB issue is 6% and they’re still open ended selling those suckers… You would think that selling a 6% issue to refund a 6 3/8% doesn’t offer enough meat on the bone to do and the fact that they still think it’s good for them be issuing more 6% is a reason to think they won’t bother LANDP… Incidentally, this is my way of saying I’ve owned LANDP so long that I had lost track of its price and the call implications until either you or Tim or whomever mentioned they successfully unloaded at a very high price… Sloth at its finest on my part, rationalized by knowing I originally bot it with an acceptable YTC in mind so every day that goes by without it being called, I’m better off than my original expectations, even if I miss maximizing what I might have been able to do.. .

          1. 2WR, I wouldnt be buying at 25.60 if I felt the odds were in favor of them doing that. Just wanting others to know possible perceived risk. And the 6% from 6 3/8% wasnt my real math concern. This is…
            The primary offering of the Series B Preferred Stock will terminate on the date (the “Termination Date”) that is the earlier of (1) January 10, 2023 (unless earlier terminated or extended by our Board of Directors) and (2) the date on which all 6,000,000 shares of Series B Preferred Stock offered in the primary offering are sold. The offering period for the dividend reinvestment plan will terminate on the earlier of (1) the issuance of all 500,000 shares of Series B Preferred Stock under the dividend reinvestment plan and (2) the listing of the Series B Preferred Stock on the NASDAQ Global Select Market (“NASDAQ”) or another national securities exchange.
            They may eventually catch some heat about getting this thing publicly traded to provide a sell option besides the lowly $23 put they have on it. Rolling P into that could help expedite filling the issuance out. Im not worried personally, though, but anything can happen. What I want is what has happened a bunch of previous times to happen one more time…Liquidity dry up and next 3 month divi announced and sell out over $26. :)….But like you, holding if it doesnt happen will provide me no angst.

    1. I didn’t get that one, end of quarter is a busy time with lots of ex-div’s. I’m playing CHMI-A, DX-B, several AGNC’s.
      picked up some AFINP for next Thursday.

  74. 2WR, You go crazy buying more EP-C driving it up? Those who bought recently for a flip notice its last trade was $50.47 up 68 cents today as of this post. Its tempting to unload some of my relative big chunk. But I probably am going to hold for now. Not so much for higher gains, but to stay out of trouble buying something else with proceeds.

    1. Grid – ‘Twasn’t me, but it’s only natural because I had decided to bid for a third tranche if I could buy without increasing my 49.66 average cost and then boom! off it goes without me…….

      1. 2WR, Just based on its price action, credit quality, and duration risk, this was a layup play. This is a prime example that low yielding issues can have as much short flip possibilities as high yield issues have, and these have worked well for me. Now one had the chance for an easy 2% plus flip. The window could and probably will close again. And on this issue, I would prefer it to drop to mitigate any selling thoughts that could enter my head. This thing can bounce like a yo yo. But the 2028 time stamp basically makes the movements a non issue for me because I do have the option to hold.

  75. About to tee off and seen my additional 200 share purchase of CBB-B hit earlier this morning at 46.15…We shall see about this. Looks like it went a lot lower this morning than that though. That gives me 500 to go with Monday 42 purchase.

  76. I’ve enjoyed listening to your stories on flipping. Preferreds for me are mostly buy and hold. If something better comes along I’ll sell a weaker stock. I like that income coming in every quarter. My fun is trading Spx with leverage, (sso, upro, sds). Thanks to Tim and the rest of you guys on this great site for sharing your knowledge. ATB.

    1. Buy & Hold is normal investing, especially for preferreds. We’re the outliers here. If everybody flipped it would stop working.

  77. I cant recommend this but I wanted to share it as I have done this for years. It involves juicing returns on past call issues and taking advantage of their movements inside a tighter window…
    I will use two example this past quarter…OSBCP and AILLL… OSBCP tanked about 6 weeks ago apparently on a CEO CC that they may look at redeeming issue (something they have said 3 years ago, and he also stated they are looking to acquire a bank before redeeming as a first priority). So I loaded up on the 40 cent drop and bought up on dump at $10.25…Then a few weeks later I sold them all around 10.60 on a liquid day. Then I bought back at a less amount of shares at 10.49 and sold back at 10.60… Then I repurchased again at 10.52… Then today I sold them at 8 cent higher ave and then turned around this afternoon and bought them all back at 10.51-52.
    So I have 54 cents of gains on a 19 cent divi, plus I am still going to get the interest payment, never missed getting it. One has to be willing to let an issue go if it gets away from you. But, Im like Mr. Lucky, there is always something on my rotation list I can move too. But doing these trades mitigates the call risk loss. I have been fortunate to never been smacked with a call. But I mitigate the risk by playing in ones that have compelling reasons not to be called. This helps tilt the playing field in ones favor.
    I just dont buy and hold above par, past call issues generally. Even AILLL though it is harder. I have been able to buy and sell my 1000 shares at 27.20 and under and sell at 27.40. Plus I got them back last week again and will also collect the divi when it goes exD in a few weeks. At this point I will hold unless someone wants to pay $27.70 or more then I would sell. In this case this preferred moves in a narrow range, but in essence juice a 6% er into a 12% er on trades like these.

    1. Wow–old second keeps you busy–might have to put that on my list–not that I need more to do.

      1. Tim, it seems like only a couple times a year I get this opportunity to hit it over and over. And eventually price and risk/reward gets away from me and I move on until a reentry point can happen.
        I think I actually created the mini sell out today as selling begets selling for a short period. I saw a strong bid and I dumped them onto the bid to cover another trade I made today. And then the trading picked up right after I dumped. So then I tried another trick on another stock to flip and used that money to repurchase the OSBCP at 10.51 and 10.52. It mostly dried back up after that and price moved back up when the liquidity dried up.

          1. Martin, that is exactly what I do, within the list I play. Two days ago EP-C dropped to $49.15 again. I needed 200 more like a hole in my head, but I bought them. Yesterday I exploited a huge bid spread on EP-C selling in essence those 200 shares at 49.70 and 49.61. When the ask went to 49.98 and bid was 49.45, I thought there would be some play within. The free trades help this cause. I sold the above in consecutive transactions and they filled almost immediately. An easy hundred bucks made buying in a restaurant parking lot and selling relaxing in a chair, ha. Some people dont think that is worth their time. I respect that, but this is fun for me. Plus I respect a buck. There are millions of good people busting their butt working for $100 a day before taxes. And I made a hundred tax free punching a couple buttons. Doesnt seem right really.
            But the overall the key is buying something you are comfortable holding longer term if need be, which I am with this issue.

            1. grid, I added to ep-c yesterday too at 49.44. My last purchase was at 49.99. i also sold usb-o 26.30 that i picked up at par a couple of months back(i posted the buy on the reader alerts page). i also purchased osbcp when it dropped but i am only up 3.5% so i will continue to hold. I have sold a lot this week that we’re up > 5%. 2019 has been a great year and this web site has been phenomenal for sharing.

              1. Libero, I always find it interesting to see who controls these issues as they ultimately determine the liquidity and how it trades. Its a rear view mirror thing of little use but interesting none the less. Take EP-C. Around $220 million is left in old float if memory serves. Invesco Advisors and Loomis, Sayles & Co. LP between the two held well over half of all shares as of 9/30.

    2. All your in and out trading on OSBCP and all I managed to do on it this week was have my best offer get @ 10.64 get shopped and have a lost trade for an .001. That’s why you’re the master and I’m a buy and hold kinda wimp… Yeah, I tried, but missed, then began to think the characteristics of OSBCP that got me in in the first place was the defensive aspects that could theoretically make it more valuable if interest rates rise (as the call risk theoretically is lessened), so I stopped trying to flip… I did manage to buy small amounts at 25.26 and 27 on 10/28 and sell 1/4 of it the next day at 25.46 while spreading my arms out wide and shouting I’m king of the world… Is that called the gambler’s high?

      1. 2WR, I got lost in your post above — the trades at $25.26 and $27 were obviously not OSBCP, which is a $10 par issue. And it could not have been AILLL either, that one is comfortably above $27. So which stock were you talking about?

        I am just consumed with curiosity…..

        1. He meant 10.26 and 10.27 as that was the day it was crashing. That was probably the day I bought all of mine. I didnt realize it had been that long ago already, but it is still the same payment cycle…Time flies anymore…I do remember buying them on my cell phone while trying to drive on a country back road from golfing. I wasnt going to be denied!

        2. Another one of those DUH moments that seem to be happening more and more these days even with Tim’s adding his 5 minute “Edit” button. Yes, Grid’s right – I wrote 25 by rote when I meant 10… Sorry ’bout that…

          1. Cool, glad that’s cleared up. I was trying to connect dots in case you were referring to some other security, but simply couldn’t do it, so had to ask.

            I’m glad I have OSBCP, bought 2 years ago around $10.25 or so. Do not intend to sell, in fact if it does go back down to $10.25 again, I might add.

      2. 2WR, There is absolutely nothing wrong with buy and hold. And what you did was great too. Collect an entire quarter interest payment holding a day. Plus you take down some call loss risk too. Great stuff!
        Im more pliable just because I am more of a Mr. Lucky (fellow poster here) type guy..Always something to buy. I got about 50 on my rotation list and some will be wobbling up while others wobbling down at the same time.

        1. Grid – Gosh I think I stopped having a 50 item rotation list once I figured out dropping one vinyl record directly down on another using a multi-record dropdown automatic spindle stack-o-matic turntable was the best way to scratch up all the 45’s and lp’s I had in my rotation. I spin my 50 item list manually nowadays. My old Linn Sondek saved the collection.

          1. Thats basically me, Martin. I break up with my lady stock friends often, but we always do so on good terms, to be able to reunite once again down the road. 🙂 But, I suspect I have more portfolio drag than you, that is why I like to trade and juice returns so frequently. I mean I have some significant low yielders I own and wont part with. Issues like IPWLO and owning several of the old Ameren/Union Electric preferreds are going to drag down yield and performance. It is what it, is as I am not selling.

          2. 2WR, Speaking of manually, that is how I rotate my issues. I used to have that cool platform TD thing, but TD phased it out last year and now they got Sink, sank, and Sunk, and something else. Whatever, I dont even look at it. I just look at my culled list I put together on a CNBC watchlist and occasionally check some bid asks quotes on Vanguard as they have the honest numbers on lead bid and ask.
            I bring a knife to gun fight on this trading stuff, but I dont care. Im not going to think hard on this stuff, it happens or it doesnt. I already studied long ago to determine if and how much I will invest in each of them. If just becomes a rote transaction without thought if the price point is achieved.

    3. You have to wonder why they don’t call these issues. Love the OSBCP coupon so I’m putting it on my watchlist. Thanks For the post Grid.

      1. Kapil, its iffy but it boils down to math. Grandfathered Tier 1 capital trust debt. So after fed and state income tax this 7.75% doesnt cost them that but actually 5.58%. So they would have to issue a 5.58% preferred to redeem and just break even. So that isnt going to happen. So its either leave outstanding near term or flat out redeem. They alluded they may reduce their capital needs if they cant acquire a bank. But this will take time to explore. But its effectively trading 2 payments plus this months payment.
        So I will look to flip after payment and try to find a proper reentry point not so exposed. Sometimes I have to wait quite a while. There is other things to own in between, ha.

      1. Dan, its been called. Redeeming with less than full interest payment. I got out right after last payment at 10.50 a few weeks ago.

        1. Gridbird,
          When? @ how much? Where has this been published?
          How do you know all these things? I could not google find anything ….



          1. Dan, I posted it in Reader initiated links thread here this morning. I saw the issue sinking into 10.25 range. I checked SEC filings under OSBC and it sent notice of redemption yesterday after market close. So obviously I didnt buy. A couple months ago it hit 10.25 and I loaded up and caught an interest payment and sold at 10.50. I checked then also just to make sure. CEO was suggesting redeeming it was a high priority, so I dance in and out of these things to avoid holding the call bag.

            1. Grid,
              Now I see your post this morning. And tx 4 the explanation!

              I guess we should get used to see more calls of many of the callable good securities we have.

  78. Does the TNX bother anyone?
    Higher highs and higher lows concern anyone?
    I admit to being trigger happy, but i always had a keen eye.
    Watching you guys buy/sell and being out of the loop nags at me.
    Gold is getting a lot of press these days.
    Anyone know a decent etf i can buy ?
    or should i buy a long term option on them instead?

    1. It feels like year-end selling is abating as my preferreds are moving up in spite of the rise in rates. Would like to buy RILYG on any weakness for a dividend capture. I sold it on the recent spike at 26.16

  79. Has anyone had a close look at an anti-dividend capture strategy? I’m talking about issues that take a deep dive after the ex date and recover strongly after all the divi capture selling is done.

    Some charts would seem to support such a strategy.

    1. bob-in-de—I do that also–buy after ex for issues I think will spring back quickly (maybe they spring back all the ex amount within a month). So I sometimes buy before and ride it higher into ex. Sometimes I go right ahead and hold through ex–and sometimes I buy after ex. So 3 ways to play it–all have been fairly successful this year in my experience, but I focus on a limited number of issues for these plays because of time constraints.

      1. TY, Tim, I suspect the key is narrowing the field of candidates by some process. One can only look at so many charts in a day.

        1. It would relatively simple to write a program that could churn throughout hundreds of issues to find the best candidates.
          Where can bulk stock price historical data be downloaded from?

      2. I don’t like the middle of the 3 months where issues generally trade flat without much increase. The weeks before ex-div date and the date itself are the biggest gainers. After ex-div is a more volatile time, which could go either way.

    2. Bob, See the e-ticket recent charts for NEE-N and EP-C.

      Being a YTCer like yourself, my flips or arbs are based on YTC or TNX + x depending on the issue. Fewer transactions and less flip $$, though whenever one occurs it’s a potential keeper, so no worries if it can’t be unloaded.

      1. TY, Alpha. One can get sea sick just looking at those 2 charts.

        Unless rates go way up (doubt it) I figure I’m my own prop trading desk, so picking up nickles in front of the steam roller will be the job.

      2. Alpha, EP-C admittedly is one of my bigger holds. It may even be my biggest individual issue. I have made some quick goofy $2 flips holding for literally days this past year with this. But if it never spikes again, my last purchases was over 5% YTM for 2028. That is a backstop of this quality I can hold until 2028 to get my $50 par in redemption.
        For potential flips of this ilk, you got to get the liquidity dried up. It just isnt quite there yet. Look at INBKL…It became illiquid and a quick sell yesterday drove it down to 25.28. Now today the reverse swung and drove it up to $25.84. Its like it doesnt trade, people forget about it, see the dip, cant get in and chase it up…I stayed on the sidelines both directions as I own just a bit less of this than I do EP-C and am basically at this point unwilling to part with.

        1. Sonofagun – I had a standing add on bid in on INBKL at 25.40 if I remember correctly but pulled it the other day because I gave up on it executing and wanted to bid on something else…. Darn! I didn’t notice the execution either…. Of course I had more dry powder to use at Fidelity but they won’t allow an online bid on INBKL because of the F/F. I’m so glad they know better than I do what I’m smart enough to be bidding on… What would I do without their protective womb?

        2. Grid, KMI+8 year maturity makes EP-C a keeper and was adding right at 49 a few days ago. Instead of INBKL, holding INBKZ. The 30-month longer call protection on the 6% coupon pushes the YTC over 5%.

          On illiquids, have 5 bids sitting out there waiting…and waiting.

          1. Alpha, I think 2WR, is more on the INBKZ one also. And overall a better play for more duration. I am in L because it is prone to bouncing a lot come exD time. Though L has a higher adjustment which is appealing and is jumpier at times if I ever want to exploit.
            Im hoping EP-C stays sedated for a longer while. It would remove the risk of me flipping as it really makes a solid longer duration hold without too much duration risk. Not much playing going on here other than going nuts and engorging myself on MBNKP the other day at 24.50. Not a trade Im calling home to momma and bragging about. A shameful yield chase/flip.

            1. Grid – You’re one strike away from a Kingman whiff on me as I’ve been all in on INBKL without extending out and with my risk tolerance being as it is, I never even gave MBNKP a passing glance….I just can’t get into flipping on something I’m not willing to own long term. And I bet you can imagine what fun I’d have in Las Vegas.. Do they still have nickel slots?? I’m not saying either of those moves into INBKZ or MBNKP is dumb, it’s just not what I’m willing to do… I’m willing to accept YTC yields and to me INBKL is a lock to be called on its first floating date because of its high LIBOR + rate. Where conventional wisdom has people running for the hills from these types, they appeal to me. CUBI preferreds are another example. Go figure… But I do agree that INBKL does tend to bounce around at x-div time. Looking back, I did not have a standing bid at 25.40 as I thought. What I did was manage to buy a partial of 100 @ 25.26 on x-div and then canceled the remaining bid instead of continuing to adjust it upward…. woulda shoulda coulda.. BTW, I did choose to move out to longer issues from called issues on NEWT to NEWTL and SAR to SAF, so I guess maybe I’m really a wild and crazy guy afterall….

              1. Knock me over with a feather, 2WR, I need to take memory pills. I thought you owned the Z shares…Maybe Im thinking of Inspbudget then.

    3. No I haven’t done that. I’ve noticed a trend on ex-div day where they drop toward midday. So if you profit from div capture in the first hour you could buy it back a couple hours later then flip again. Just an observation, I haven’t tried it. Since I trade in IRAs I can’t do much day trading.

      Sometimes the best price is at opening bell. I set a high sell order before opening. It gets executed more often than I expected. The risk is you set the price too low and could’ve made a bigger profit.

      1. Martin – Why do you say that about trading in IRAs, that you can’t do much day trading???? Are you saying just because of not being able to use margin or some other reason?

        1. Takes 2 days for a trade to clear and that matters when you can’t use margin. I can daytrade with cash just sitting around but I can’t recycle the same dollars to sell, buy, and then sell again in less than 2 days. You’re allowed to do that twice a year, then after the 3rd time they restrict your trading to settled money. It’s a regulation.

          1. Martin G – been there with the restrictions before–90 days I think. I don’t have that problem anymore as I usually have plenty of dry powder.

      2. Martin – agreed, day trading or even short term trading in qualified account is challenging. Vanguard will let me have outstanding orders in excess of any cash balance but if they hit I have to sell something by end of day. No margin.

        1. Im in Martin’s situation. But short term I can be aggressive with Vanguard taxable account. If I dont want to sell anything to cover trade near term, I can funnel immediately untapped home equity line of credit account to Vanguard via checking account in a minutes time before market close though.
          I typically have an issued already eyed for eject when I have a bunch of no cash backed bids floating though.

    4. I look for this trade as well. A lot of preferreds drop sharply over the 2 weeks after x date and I look to ride them up over the next month or two. My target is usually double the dividend. If feels like a safer trade sometimes.

      1. Kapil – sounds good to me. Rather double my return by trading low risk issues than follow the HDO boys into the swamp chasing garbage.

        Been meaning to ask Rida how his CBL trade is working out.

        1. I was sad to see Preferred Stock Trader join the HDO Team. I think he is good and would love to see him here.

          1. Kapil, This may lighten your heart a bit. He doesnt advertise it, but any writing proceeds he receives he donates to his charity to assist people in paying for health insurance. He gets paid more to funnel articles through it. But the volume of articles is really not up by him as he truly only writes when he sees relative value. Unlike the other writers of dubious truth speak, I totally believe him to be a stand up guy.

    5. bob-in-de. There is a website, Dividend.com, that provides data on price recovery rate after the dividend ex date–along with a lot of other data. I subscribed to it for a year, and concluded that there were very few, if any, investments that one could reliably forecast a consistent, timely price recovery. My actual performance was as much luck as it was data driven.

  80. Just flipped the newest Voya. Good cap gain + 2 dividend payments.

    Comment about banks being good candidates is spot on. One of the C issues got to 28 and change a few years ago.

  81. Dividend captures I’m monitoring for late December.

    AGNCO, AGNCM, AGNCN. watch the prices. I trade between them often.
    CMO-E. also a good hold if you don’t want to sell.
    XAN-C. high coupon.
    CHMI-A, CHMI-B. bought A today. B is slightly better when prices align.
    DX-B. also DX-A if you care to risk a loss if called.
    ANH-C. first call date in January.
    NGHCN, NGHCO. price rose this week, I’ll pass unless it drops back.
    GBLIL – div capture doesn’t seem to work as well on insurance stocks.
    TANNZ, TANNI. makes me nervous I’ll wake up and they’ll be $1 lower.
    HFRO-A. ex-div this Friday. low coupon.
    TWO-D, TWO-E. both callable. I gott tiny amount of D before it went up.
    NYMTN – actually 4 issues from NYMT. N looks like the best candidate.

    1. I just bot some DX-B for a dividend capture. I especially look for preferreds that are weak a month before x date. Also bot some CORR-A recently.

    2. Martin, do you know a a good charting site that gives you either ratio charts or price difference charts on preferreds? Scottrade elite used to have them but no more.

      1. No, I just look at individual charts and then set up a watchlist. I don’t like to automate too much because ironically I don’t notice as much I’m not as focussed. If I’m closely following a few stocks I remember the details., otherwise I call up the chart again when something happens.

  82. Right now, I like Corr-A for potential dividend recapture. It’s coupon is 7.375%. Call protection ends the end of Jan 2020. Last dividend was 11-30, so if my calculation is correct, you get 0.28 cents guaranteed (you should check my math for yourself). It has traded down to 25.22 – 25.23 range. So you get .05 to .06 cents for the next six weeks which is about money market rates.

    In their last quarterly earnings they talked about opportunistic repurchases (plural ) of their preferred offering in 2020. Does this mean multiple or not an immediate call the end of Jan? That’s what I am thinking.

    Either way the high coupon and the mention of repurchases should keep it at 25.00 plus accured dividends .

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