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.

462 thoughts on “Flipping and Dividend Capture”

  1. Dividend captures are abundant at end of quarter, But if recent volatility continues it could drown out these small movements, making it hard to tell if the capture strategy is working. Here are the ones I’m watching

    29th – FBRT-E CHMI-A/B EFC-A/B SEAL-A BHR-D SRG-A(risky) HCDIP(monthly)
    30th – AGNCO/N/M/P NYMTM/N/L/Z GPMT-A VIASP TANNZ ACR-C XOMAO/P
    not yet announced – DX-C RTLPP/O

    July 7th – CIO-A
    8th – DBRG-H/I/J
    11th TWO-A/B/C
    13th NREF-A
    14th NRZ-A/B/C/D FHN-B(6 month)

    1. I randomly picked TANNZ for a closer look. All data are from Marketwatch, and all prices are closing prices. Over the last four run-ups to ex-div date, here’s what happened:
      Business day, average closing price
      x + 2 25.865
      x + 1 25.91
      ex-div 25.805
      x – 1 26.245
      x – 2 26.23
      x – 3 26.22
      x – 4 26.165
      x – 5 26.1175
      x – 6 26.195
      x – 7 26.1375
      x – 8 26.235
      x – 9 26.175
      x – 10 26.0525
      x – 11 25.8875
      So the best strategy over those four cycles would have been to buy eleven business days prior to ex-div, and sell three business days prior to ex-div for an average profit of 33.25 cents. That’s better than buying on the day prior to ex-div, selling the day after ex-div, losing 33.25 cents but pocketing 50 cents of dividend for a net gain of 16.75 cents, on average. Of course, the first strategy takes 8 business days and the second takes two, so if you annualize, the div capture is better.
      This cycle isn’t following the previous pattern. x-11 was 6/14/2022 and the closing price was 25.60. x-4 was 6/24/2022 and the closing price was 25.60 again.
      I am not a financial advisor and I can not predict the future.
      I do not currently hold a position in TANNZ.

      1. Good study though small sample size.
        I’ve heard various theories about the best time to buy and sell. For me the answer is always “whenever you get a good price.” It’s really about trading on price movement. I find more opportunities around the time of dividend capture so I specifically look for them. I don’t recommend trading on specific dates at whatever price, that’s only part of the puzzle. Because of the spread you might not get the last price anyway.

  2. SCHW-D – the Schwab 5.95% coupon QDI preferreds seems to a decent buy at or just below $25. Has been callable but not yet called to my knowledge. Ex-divd May 16, 2022

  3. For those of you that like to swing trade preferreds, take a look at a chart of EFSCP. The bid ask spreads can be wide, and volumes low, but price swings of a few percent per day are not uncommon.

    1. Trying to avoid low dividend issues at a time like this. When stacking small gains my first priority is to avoid big losses. I like playing the spread during quiet patient times. More power to you if its working.

      1. Agreed. I’ll stick with swing trading TDS -U and V which often have large spreads and currently yield 7.5%

  4. I would like to put a few unusual strategies out there for consideration: (1) “reverse dividend capture”; short a low coupon perpetual the day it goes ex and buy it back before it goes ex the next time. The trend is your friend. (2) Possibly counterproductive, but you could be long the same issues and collect the albeit moderate coupon of the perpetuals without price risk. Of course two brokerage accounts are needed to avoid being short the box.

    1. After rethinking it over, although option {2) above would be low risk, for overall portfolio performance, option (1) has a chance, if rising rates keep dragging the price of all fixed income lower, for the realized gains you would receive from option (1) to help mitigate the unrealized losses you would experience with the rest of your fixed income portfolio, and help keep your account value more constant. The high convexity experienced with low coupon perps would help give you “more bang for the buck”

    2. I’m not so sure that using two brokerage accounts gets around the ‘short against the box’ rule – but I won’t swear to it.

      I’ll offer unusual strategy (3). I’ve been short about 30-35% of the value of my long holdings (same issuer). When a short position has a gain, I flip to another short position, hopefully in the same issuer. Had a good one today at +66 and +1.19, softened the damage elsewhere.

  5. Major flip in NYMTZ today. down to $3.30 lower than NYMTN before breifly jumping to within $2.00 of it. I caught some but not all of it.
    Been playing RTLPP RTLPO swaps now that SB-s cooled off though they are still worth something. Rumor of a call not taken seriously since it’s below stripped par.
    Been in MITT-B for a long time finally got a swap to MITT-A today. Need more of those to cope with the drop.
    Fully in NRZ-B now that NRZ-D is 80-90 cents higher. Hopefully I’ll get to swap back unless investors are finally wising up.

    1. Divi captures have been going pretty good. I should do more but dont push it.
      I already had an oversized NSS position but bought 400 more yesterday just to gamble on an exD flip. Was able to sell that lot just 7 cents cheaper than I bought yesterday pocketing the 42 cent interest payment. Still keeping the regular position just because that Libor rise is really going to pop the yield here. Though I doubt the price does much if anything being its past call.
      Several issues have jumped past week so I sold most of those and entering others. Im not as keen on my closing purchase today as it was still dropping and I got at $26.08, but going to give DDT a run for the money again as it will go exD in about 2 weeks.

      1. I broke rank and did some of my selling before ex-div this time prices were too good to ignore. The quarter ending issues I held on to didn’t do much today. Already sold some of next weeks batch too. Not believing in this rally.

    2. Martin, Do you have access to a charting platform that shows the price difference between 2 securities? Scottrade used to have that ability but it is gone. I haven’t found anything to replace it.

      If anyone has any suggestions, I would appreciate it.

      1. No, I make my own watch lists and follow them. After making the initial calculations I can tell just by looking at the changing prices. There’s a practical limit to how many things I can keep track of so I’m always scouring for the best potential bargains to follow and dropping off my list the ones that aren’t doing anything. I don’t like to automate too much of the process because I stop thinking if the program is thinking for me.

      2. kapil –

        IBKR offers the ability to set up long/short combos which can be graphed as well. Don’t know if it’s still available but IBKR used to offer a DDE link which updated an Excel spreadsheet in real time (create your own pairs in the spreadsheet).

        A sluggish alternative is to set up a spreadsheet and cut and paste a live quotes watch list into it.

  6. Dividend captures seem small now compared to the other wild gyrations going on. Yet I’m still playing them amidst the noise. End of quarter is a busy time.

    CIM preferreds ex-div on the 24th,
    all Gabelli’s coming up soon.

    End of month:
    AGNC’s NYMT’s CHMI’s DX-c GPMT-a VIASP TANNZ AXS-e

    early April
    RTLPP/O XOMAO/P DBRG-H/I LFMDP GNL-A/B NREF-a

    Plus many others I’m not following. My attention span is only so big.

    1. MER-K was an easy one day divi capture as no brokerage seems to know how to post it. It went exD Friday, but closed Thursday at 26.28. Closed Friday at $26.10 off a 40 cent interest payment.

  7. BHFAP with 6.6% coupon goes ex-divd tomorrow and a likely good dividend capture candidate at these lows of $25.7x.

    Has been down quite some on no specific news the past week or so.

    Own some and added more today to capture tomorrow’s dividend and aim to exit if / when it gets back to $26s where it traded until past few weeks

  8. Someone wanting to reach for yield a bit and have some longer term back side protection, PLYM-A may be snagged under 25.50 now. I bought 400 around $25.70 range and just doubled down with 200 at $25.50 and 200 more at $25.48. It kicks out a .4688 divi in 3 weeks. Hits first call date later this year and has penalty premiums added if not redeemed by 2024. Its an industrial reit.
    I wish I could buy more, but I have hit my limit.

    1. Grid:

      There was a discussion thread on PLYM+A a few weeks ago. I blew out of much of mine at $27+ when it was inexplicably trading there on 2/11/22. Will definitely be called at year end. I still hold some.

      It is a strange duck the way it trades. Too small to be owned by PFF. Hoping it gets jammed back to $27 for you!

      1. Rob, glad you got that upswing. I have traded this thing off and on for most of its issuance. And many other times I thought I was going to get some for a trade and kept getting jumped. Most infant industrial reits tend to shed their prefereds after reaching adolescence. So it wouldnt surprise me if they jettison this one fairly quick after call date. So it wouldnt surprise me if you got the last real good spike bounce. So hold I will, but will take a spike sell opp too if it happens.

      2. This is from today for them.

        “As of February 21, 2021, the Company’s current cash balance was approximately $9.8 million, excluding operating expense escrows of approximately $5.0 million, and it has approximately $141.0 million of availability under the existing unsecured line of credit.”

        So they do not have enough cash to redeem the preferred on hand. They won’t have enough cash by the call date. Is the assumption they will borrow the money, use their line of credit, sell more common ATM, or issue new preferred? The way things are going the whole issue new preferred for much less then 7.5% is looking iffy? They need approx 50 plus million to redeem A.

        I bought 200 shares. I am betting on them not calling it right away. They will probably want a bit more time or maybe deals will pop up they want to buy. But with only 200 shares bought I do not have much confidence with the above statement. Just puts some money to work with low risk.

        1. Fc, for me its good either way. It will work great for me as a 10 month call induced hold, or out to 2024 hook, too. But I would gladly take another spike and dump like Rob recently got. I have in past got buck flips on them in quick manner. But that was during yield chase heyday.
          I wouldnt put much stock in their cash on hand in terms of when they redeem. This preferred is not on the books as “asset capital”, its on the books as a liability, so its being treated as a term dated preferred. They can do all sorts of non cash transactions to rid itself of it like you said. Many times with these growing reits they just ATM the common.

            1. Thanks 730, as that is good news for me. I can now hopefully count on one issue not going to hell anyways, ha.

                1. Its never over until the fat lady sings the call notice and the money has been distributed that is certain. Fortunately or maybe unfortunately, I have a couple I own that I worry about more than this one for the time being.

            2. “When Jeff talks about the importance of the next 12 months to 18 months in the life of Plymouth, the potential of simplifying our balance sheet with this Series B paper working out exactly as intended and the ability to pay off our $51 million of Series A preferred stock at a 7.5% coupon in early 2023 are two great examples. We’re looking forward to being able to take these two series of preferred shares out of our capital stack.”

              Well the longer they delay into 2023 the better. Basically a maturity of early 2023 is pretty good in this env. Make a bit on the money without worrying about it getting trashed price wise like Grid said.

              1. The CFO, Dan Wright, talked about calling PLYM-A in early 2023 like it is a sure thing. I wonder if they are going on the recent past trends of how everybody and his brother could float relatively low coupon preferreds? How confident are you that PLYM or any other company can get those attractive rates one year from now? We can buy MNR-C with high confidence it will be called within this week. Maybe your crystal ball is good for 3 months out. How about 6 months or 12 months or 24 months?

                There are ways a company could lock in the rate one year from now, but they are not free and would hit earnings/FFO this year. (Cross-over refunding, revolver, interest rate swaps, new debt offering, etc.)

                The issue for us investors is to handicap the call probability of every issue that is coming up say in the next year or two. A wide range of possible interest rates translates into a binary choice of call/no-call on specific issues.

                Bottom line to me regarding PLYM-A is that an early 2023 call is less than 100% probable like management implies. And if the company is NOT able to call it, where does the price go to since not calling it would be viewed in a negative light?

                We do not currently hold PLYM-A in any account. We used to have it many accounts but sold it a while back.

                1. Tex, Yes, anything can always happen. But if it is or isnt redeemed these typically have nothing to do with a reissue. It will be paid off with debt or typically more likely common stock ATM. Fledgling reits like these want preferreds disposed of. He sure is implying the typical playbook of a baby reit growing into adolescence.
                  At companies origin, they issue cap stack of common and preferred with yield.
                  With anticipation of company growing into itself with stock appreciation and then issue more equity to pay off this liability. As you can tell he mentioned directly “simplifying the balance sheet”. This means the goal is to knock out the preferreds. They have two the Series A which is this, and a Series B convertible/redeemable. This one actually is more onerous due to its provisions and private placement price at $17.
                  They also have that two year window before yield adjustment kicks in on A so its not a necessity to immediately act. I have read on more than one occasion about a preferred being redeemed and it not happening. Maiden CEO stated in conference call MH-A was going to be redeemed later that same year a few years ago. Well, things happened and now in 2022 not only has MH-A not been redeemed, its dividend was suspended later that year and is still suspended over 3 years later and running.

                  1. Grid, if things go south, PLYM’s common price would be below NAV, so using their ATM to issue more common would be dilutive. They could do it, but it would probably tank the common price even more and get into a negative feedback loop. Yes, they could always float bonds, but at what rate? It might force them to leave the -A outstanding even if the rate kicker starts up. Not quite as bad as Maiden suspending payouts and actually if you held it, you would probably be happy. But at the same time, it would be indicative the balance sheet would be worsening by the day. . . Unknowable at this point.

                    My comment was more intended to apply to all potentially callable issues, not just PLYM. What management thinks and says today, might not be possible in a year or two. . .

                    1. True, but one could say that about any issue, any company, any time if they had a financial problem.
                      I took your original post to be a concern if interest rates went up to where they couldnt reissue a preferreed lower as that was what you were discussing. So I was just explaining the process that they wouldnt be looking for a lower coupon preferred to issue.

                  2. Thanks for bringing up the bad memories…. Fortunately my experience centered around Maiden Holdings North America, not Maiden Holdings, Ltd but I got sucked into MHNC after watching MHNA being called in 2016 and then buying MHNB in advance of its call in 2017… What the heck, what could go wrong? MHNC was only .25% lower than MHNB and it was investment grade, so why not jump on board? So yes, good example of when a company says one thing and then never comes thru. Lucky the “North Amerca” aspect was saved from as dramatic fall of the Ltd issues but it still hurt.

                    BTW, no panic if MNR-C doesn’t get called today…. The only thing promised is a call, “on the fifth business day (the “Closing Date”) after the day on which the last of the closing conditions to be satisfied or waived…” Normally, but not always, the shareholder vote constitutes that last closing conditions, but this might be another example of the MNR situation being the exception to the rule.

    2. Grid, thanks for the heads up. Picked up some shares of PLYM-A. They should be a good replacement for my MNR-C shares that will soon be redeemed . With the 47 cents divi in 3 weeks at $25.50 these are selling almost at redemption value. And the likelihood of them being called in 2024 should hopefully limit any potential downside

  9. Just sold ABR-F @ $24.17 and
    bot ABR-E @ $22.49.

    Could never understand this imbalance. Can somebody?

    1. F has a min float rate. From 10/30/2026 dividends will be paid at a floating rate of the Three-Month SOFR plus 5.442% per annum however, that in no event shall the Floating Rate be lower than 6.125% per annum.

      1. qx,

        Right, the difference is the min float rate of ABR-F, but in my mind the difference in prices seemed to big when ABR-E has a fixed 6.25%, unless of course if one believes that after 2026 SOFR will be so high and for long enough to justify such difference in price today?

  10. Both “flipping” and “dividend capture” as strategies may become less reliable in a rising rate environment than it would be in a stable or falling rate scenario, as prices go in a downtrend. Another strategy that I have used at times is a spread trade, where you find an issuer with more than one series of exchange traded debt. you follow the price differences between the various series and switch from one series to the other as the spread narrows/widens favorably relative to where it was when you entered your position. Worked well with some of the Southern company (utility) preferred and ABR-A/B before they were called. If they are trading at a premium and one is approaching call, be careful, because the issue approaching the first call date may approach par to prevent a negative YTC scenario

    1. When there is volatility the wild price movements can drown out those small gains, making it hard to tell if the strategy is working. Avoid risk when stacking nickels.
      Spread trades you describe are always a good idea for something you plan to keep through the storm. There’s often more price divergence between similar issues when there’s volatiltity.

    2. I don’t have a problem selling XYZ-A at a loss if XYZ-B gets whacked and offers a much better yield, all else being equal.

      As Martin G stated, when there’s volatility, usually there are more divergences between similar issues. However, that has not been the case in this correction as the spread between the highest yielders and the lowest yielders has contracted.

      Long/short pairs trading has worked well in previous volatility divergences. It’s pretty much dead in this contraction because the low yielders issued over the past few years have been whacked much more.

      1. I like to swap between similar things like two separate issues from the same parent company. When they should be moving in tandem but dont. I also trade different types with different rates but I don’t consider it a direct swap.
        I bought a couple financials around 6%. Maybe I’m too early but I like to gradually buy into the price drops I never know when it wil turn..

  11. DDT is the perfect example of not buying and holding on spikes. I sold out a few days ago at $27.50 and got them all back today at $26.23 today. When you bank profits, it makes it mentally easier to hold if you reenter lower and it would sag more. SR-A scores yet again for me. Got in at 26.04 and 25.88 and sold yesterday all at $26.50. Hopefully it falls back into the buy zone soon again. I blew it on NSS this morning as it sagged into low 24.70s and I missed it, as it has already bounced back to its more normal $25 range.

      1. qxjm, I just follow the credit quality and price action within the relm of current interest rate sentiment, so everything is subjective. That being said, I personally wont buy at that price point. History shows you will in time get that shot again around $26. It always seems prone to spikes then fall backs.

    1. Bought back all my SR-A 1000 shares at 25.95/25.90 today after redumping yet again at $26.50 last week. I really like this sub 6% ute, but I had to trade it hard last few weeks to get this recent batch cost basis well under $25. Investing is part mental, and using my mental math, I can feel comfortable owning this if it drops further. Of course if it bounces high enough, bye bye again you go for the zillionth time.
      I have been doing this with C-N also, and was forced to sell some today as it went back near $27. I may not get another drop significant enough to repurchase so if it rises more, sadly the other big chunk will have to go at some point. As risk/reward being past call is too penal.

      1. Grid – I have a suggestion – I bet there are III’ers who’d love for you to get into the details of the math calculations and how you keep track of them over time when your trades “get this recent batch cost basis well under $25.” The reason I say this is that I don’t think you ever see that actual under $25 number show up on your brokerage account, right? It’s a number you have to track based on using your flipping profits to rejigger your actual cost, right? I mean right now in your example of your purchase of 1000 shares of SR-A, your broker’s always going to show your cost @ 25.95/90, but mentally you know your cost is under $25. how do you keep track of that number over multiple flips???? I know it’s not rocket science, but it might be worth sharing.. I’m always willing to suggest even more ways for you to share your winning ways here than you already do.. as if it’s not enough… ha

        1. Yes, that is why I said “mental math” which is fake and contorted. Basically I have done 3 recent 50 cent round trippers. They are close enough in time together, I consider it the “cost basis”. But its not, as unfortunately these all were done in tradeable account so I have STCP tax on these come filing time.
          Investing is part mental to me, so if this drops to $25 tomorrow, I wont feel like a loser buying them back, knowing I have had quick strike gains recently with them which would help salve the wound. If a few weeks ago, I bought in 25.80s like I did and just had held them down to $25, I would be ticked. But mentally I can handle it now after quickly trading them a few times. If it spikes up some again, and I cant get back in thats fine, there are others. I have sat this one out for 6 months before waiting for an entry point.
          My theory has been the general trend has been downward biased pressure, but they dont go down on a slide. Some issues like SR-A and C-N are putting up “fights”. And they have the liquidity to be able to exploit the trends either way in modest proportions.
          Like anything, it will work…until it doesnt….

    2. Was not familiar with NSS, but, upon examination, it looks to be a candidate for a spread trade with NS-A. Both are floating rate at this point, the floating rate is very close, the credit ratings are close (same for Moody’s, 1 notch different S&P), the spread fluctuates in a 10% range fairly often, and as an extra bonus, the ex dates are in a different month, making it a candidate for dividend capture as well. For flipping, NS-A has greater volitility than NSS, if you can time it right.

  12. Anyone privy to news on Southerly Hotels preferreds? Dividends were suspended at the onset of the pandemic but accrue. The three outstanding preferreds have had strong upside movement the past week, from about $16 to $19, with slightly increased volumes. The price increase may be due to an expectation that the common divvy will be reinstated requiring a catchup on the deferred preferred divs. It may be too late to get in or not. The common seems to trade from about $2 to about $2.5, and could be a better bet if an announcement to reinstate the divs was imminent. Thoughts?

  13. I used to flip SR-A, taking advantage of the ups and downs it used to have with some measure of predictability. That hasn’t been true (from what I can tell) for a year or so, so I’ve just sat happily owning it.

    In the last few months, and especially in the last few weeks, it has been going lower, right before ex-div (1/24), so I’ve been accumulating. Sure, the common got downgraded to neutral from buy, but that’s not a concern of mine. I haven’t been able to figure why it’s dropping a bit, other than (I suppose) the same thing that is happening to others, but still, SR-A, current yield near 5.5%, I’ll bite — a big bite. I hope I’m not being stupid…

    1. Got 200 shares for the div capture. Would’ve bought more if it went lower. Hard to tell if it’s a good play or just falling with the tide,

      1. Martin, I already executed my SR-A divi capture about 2 weeks ago, and am out the door. Sour market conditions throw another variable into these things. I did buy back some of my SB-D Thursday, in effect saving about 20 cents dumping pre exD and rebuying.
        SB update, things look great but clouds on horizon. Leverage end of 2020 was 66% with $616 million debt, now its 34% leverage with $418 million debt one year later. Preferred payments in past could eat up most of profits (if there were any) this past year they were 7% of total net income. However, dry bulk index has just flat out collapsed dropping 4% Friday and 36% in past month.
        Its basically back to upper 5 year end range which means one needs to keep a more active eye on things as this ultimately works its way through the income statement if it stays down.

        1. The thing about arb trades is they work no matter where the underlying price goes. Down markets tend to have more price divergence. So I’m still mostly invested, for better or worse. As long as there’s no bankruptcy I’ll be fine. I did add a little cash on the sidelines waiting for a crash, sometimes that works but most of the time it’s just sitting there doing nothing.

        2. I remember the crash of March 2020. Some days I would make $1000 on trades but lose 4 or 5000 in price drops. When the market bounced back my previous trade profits started showing up in the bottom line. Maybe it worked too well because now I aint afraid of no crash. Only a wave of bankruptcies scares me.

          1. Yes, volatility doesnt scare me either, because I have enough illiquids to exploit the liquid volatility. What should concern one in terms of awareness anyways, is a permanent “price rerating” of preferred securities.
            If ones model is to assume say a 2.5% 10 year, 4.5% issues might as well drop the par value as it wont anchor anything. I love looking at 1970s-1980s charts of 4%-7% IG $100 par preferreds. All of them mired in the $25-$50 range. . What a multi decade long ass whippin going on there with preferreds issued the previous decade! UEPEN still has never returned to par and it was issued over 80 years ago!

            1. Ah yes, the 1970’s. I graduated in 1979 and my first job was an accountant for supermarkets. I remember the owner of “Dan’s Supermarket” complaining about the interest on his bank loan which at the time was 21.5%!

  14. DHCNI

    I have been accumulating this one for a flip just under $22. It is very volatile in price as the coupon is low and the duration (for me) is long. It is also not IG, so it is the worst of all worlds in terms of buying the perfect bond.

    Still some time to put in some bargain basement bids if you it fits your needs.

  15. Of possible interest… AAIN’s ex-dividend date is not listed at MarketWatch or Yahoo Finance. (I didn’t check other sites.) The summary page at this site correctly lists the coupon at 0.375 but incorrectly states that the approximate ex-div date is the last day of the month. However, page S-8 of the prospectus says the Record Date is the 15th of the month prior, whether that’s a business day or not. January 15th is a Saturday, so presumably the ex-dividend date would be Thursday January 13th, but more experienced and informed investors here could convince me that the ex-div day is Friday January 14th.
    All that said, look at the closing prices (from MarketWatch) about three months ago:
    Oct 8 $24.99
    Oct 11 $24.97
    Oct 12 $25.55
    Oct 13 $25.70
    Oct 14 $25.47
    Oct 15 $25.25
    Oct 18 $25.05.
    If things go sideways, holding a senior note with a 6% coupon, bought near par and maturing in 2026 might not be so bad depending on your portfolio needs and individual preferences. Closing price today was $24.90.
    I do not currently hold any AAIN but I’m considering buying a small stake.

    Standard caveats: DYODD, your mileage may vary, etc.

    1. FWIW, Fido has ex date as 1/13. I’ve accumulated a modest amount buying under par. There were some brief, wild swings recently which another reader pointed out a while back, no clear reason, and I couldn’t take advantage of them.

    1. And now with vol of 127, it’s @ $28.51, bid 27.5 ask 30.05

      Nice rollercoaster and spread!

      This should be flip-able and profitable if enough volume

      1. Jbk back to $30, bid 29.0, ask 31.59.
        Grid: how many did u flip buying <$27 and selling @ $30?, or it was not you?

  16. All my flips for December are in the can for ’21. I am starting to build a team for January, I came up with these for possible candidates so far;
    BSA
    HTI-A
    NYMT-Z
    PEB-E
    RC-C
    RC-E

    As always DYODD on these because YMMV.

    I ended up buying 100 shs of the BSA yesterday. It stayed under par for most of the day. Coupon is a little lite, but need something to replace the muni CEF’s I just dumped and it has a clear exit if need be.

    I also bought some of the HTIBP at par, but not a lot for now. I wanted something that was in a different sector than some of my other pfs/bbs.

    I don’t want to get sucked in buying a bunch of shippers, mREITS, or energy related issues.

    1. I have RC-E and NYMTZ. Both are in the red. Hoping ex-div day gives me a better exit point for Z.
      Don’t understand why RC-E is .50 lower than RC-C.
      I like NYMTM better than NYMTZ. Below par now.

      1. Martin:

        RC-C is a busted convertible issue that the company can’t call and is very illiquid. I have traded in and out of it for the last year, booking trading profits every time.

        Most websites show share count of RC-C at 780,000, but it is much less – more like 335K left outstanding. Since it is so illiquid, so you would have to expect its share price to get whacky at times.

        Ready Capital offered to buy this essentially non-callable preferred back in May at $25, and some (43% of outstanding shares) did not tender. Ready is stuck with them for now unless they launch another tender offer – which might have to be higher than $25 to finally rid RC+C from its books.

      2. Martin, I found a new way to play SB preferreds. Just sell them and then buy them back the next day a quarter cheaper, ha.

        1. I do some of that too the number of shares i own varies somewhat based on the price. But I like the swaps better because I always own something. When trading on price movement there’s always the risk that you won’t get it back and I don’t want to lose these cash cows.

          1. Ha, yes that was my plan yesterday. But the ask jumped right when I was switching. It went down today so Im back in.

              1. I wasnt really around today, but I noticed SB preferreds didnt really trade today. Preferreds and trading are odd ducks for me, as I tended to stay in a segregated area. . After a helluva first 6-7 months, I largely spun my wheels for 3-4 months. And all the sudden December has been a very good month for me again despite rates ticking up.

    2. RE: BSA not sure if this helps or hurts your idea on BSA as a flip candidate but I own a lot of it based on this comment from the CEO in the last quarterly CC – “We also expect to fully deploy our excess capital in this fourth quarter which will likely involve paying down $125 million of our retail notes and repurchasing more than $1 billion of our shares which will collectively generate significant earnings accretion while reducing leverage.”

      And though I agree with you regarding the coupon being a little lite, it’s really not all that lite when you take into account its 10 year maturity….. It did lose its IG rating, but still it’s just below and obviously, they are in a position to have the cash to just take them out rather than having to refund them. I’d be comfortable to hold if they don’t call them and have owned aobut 1/2 of what I own long term, but I do expect a call to be announced this month based on the CC

      1. 2WR,

        BSA

        Yeah, I have heard the talk regarding this. I am under par so even when these types of issues get called there are some pennies to be had (happy mistakes). As long as they don’t go banko, easy to pick up some pennies at least at call or just sell em at par and move on. Or better yet, maybe they stick around for a while. I sold CUBI-E too early, but whatever still made some divvys and a small cg. Small ball is easier for me than the BIG ONE. ha ha

        I was looking for something that had minimal risk, and enough return versus the muni CEFs, I was holding that I sold. They were paying 4.50-4.70.

        1. Yes, I got off a lucky sale of CUBI-E at 25.80 today but then turned around a fat fingered sale at the bid side for about 1/3 the same amount when trying to put in a next tier offer above 26…. Still average price was probably about 35 cents above what we’ll get when it gets called on next available date… Again based on what management has said, that’s a foregone conclusion for 3/15.

          1. Well lets go party together and celebrate. I bought 500 shares of KTH Monday at $31.75 and sold them all today at $32.74. That is a white table cloth steak dinner for 2 flip for me!

            1. Well there you go! Good one, Grid, but old hat trading to you.. ha…. I also had an unusual score today on an unsuspecting nickel stacker, CBKLP. I know it’s not your game but somebody dumped a mere 470 shares today at as low as 99.25… I had standing bids below what I thought was possible that all got hit on the way down but I never imagined it could get as low as 99.25 so I missed out on the best of the best but still scored in the buying called bonds arena.. It went ex-div a day or so ago and is called at 100 on 1/1…. 99.25 is the equivalent of buying a $25 par called bond at 24.8125 2 weeks before it’s called or over 21% annualized!

              1. Ya whipped me good on CBKLP! bought a couple hundred basically minutes before I found out it was being redeemed at 101.75, and then sold at 101.50 next day. Please dont annualize my returns on that trade, ha!

    3. One of my large holdings is XFLT-A. It goes ex middle of next month. The share price has been steady and it yields a nice 6.25%.

  17. Dividend capture ideas for December

    BW-A 14th, wild lately
    SACH-A SCCB 14th
    ECCX/W/Y 14th
    PLYM-A 14th low YTC
    CIM-A/B/C/D 16th, I’m heavy into this one
    all Gabelli’s 16th, rarely move much
    NXDT-A 22nd, falling knife
    SITC-A CHMI-A/B 29th
    NYMT preferreds 30th
    AGNC preferreds 30th
    XOMAO/P SRG-A GBLIL 30th
    end of month not announced yet DX-C TANNI/Z LMRKP LFT-A LFMDP

    and many others I’m not following

    1. MG,

      Mo flips for December 2021

      ECCD 14th (new one)
      PFIFK, PRIFH 14th
      ICRPA 14th
      GECCM 14th
      OXLCO/M 16th
      SBBA 14th

      BTW MG, when I said Oscar the Grouch I meant that I like to dumpster dive for stocks/pfd/BB etc…Thankfully I don’t live in a garbage can or else I would be “mad” too. 🙂

      I also don’t do the price swing(s) as an investment style. More of a swing trader here. Not the 70’s kind…ha ha

      I would consider myself more “edgy”. YMMV

      1. I am doing a dividend capture on PRIF-K. It went ex-dividend today per TDA for .4083/share. TDA also says it goes ex-dividend again on January 7, 2022 for .3229. I skimmed the prospectus and it says dividends are on the Mar-June-Sept-Dec cycle. The prospectus didn’t say anything about a January ‘22 ex and payment date. Does anyone know if this is correct? Thanks.

        1. this first payment is short.
          https://www.sec.gov/Archives/edgar/data/1554625/000155462521000206/a20211005-prifk424b1.htm
          Pays 40 cents instead of 43 cents.
          there is no January dividend.
          You should have fun with TDA and demand the missing dividend in January…
          The other thing that is noticeable is that they have gone dark on press releases for their Preferred shares and no mention of dividends or even the new Series K.
          https://www.priorityincomefund.com/press-releases

  18. Big dividend capture on STRRP paying back dividends plus current div totalling $1.80. Hard to tell where the price will en dup as this one has been volatile in the past. Good for a taxable account to get Qualified Dividend against a Capital Loss if you hold it long enough.

    1. Thanks for this Martin. A new issue I had not come across before. Took a little nibble without knowing too much about them..to be deposited firmly in the highly speculative shoebox….located down beneath the sock draw.

      1. Not a new issue. They stopped paying cumulative dividends last year and now they are catching up with a big one. High yield speculative play.

    2. I took a small bite. Concerned with how far price will drop after the dividend. If price rises prior to the ex-date, I may sell.

    3. Hit the jackpot on this one. Which always brings up the question “Why didn’t I buy more?”

        1. Fidelty wont let me submit a Sell order for the opening. “The limit order is too far away from the current price. Please correct and resubmit”. $1.80 dividend capture but I can’t submit an order $1.50 lower. That’s a first.

    4. Martin, you will appreciate this. The ol backward flip trade today. Typically I buy something on a drop and look to flip, but this time it went backwards. I was looking to sell half my CNTHO stash, and I sold over 200 of them over $55 today. But then they immediately became back available at under $54 so I bought them all back and it goes exD tomm.

      1. The best trades are the ones you don’t plan for they just show up and you notice. The observer ready to pounce whenever prey appears.

  19. MNR-C trading $25.0x just ex-divd last week a potential flip / divd capture ?

    Was a Sam Zell buyout but then that got scuttled and now to merge with ILPT as on 11/8. Can be called Dec 12, 2021 due to change in control clause but a great buy if not called till merger actually completed mid-2022.

    1. >Can be called Dec 12, 2021 due to change in control clause.

      Its not a change of control until the merger completes.

      1. Implication being that you can essentially rely on knowing MNR-C will remain outstanding until the merger completes…. IMHO the risk is not call prior to the merger but that the merger doesn’t happen and interest rates rise in the interim.

      2. The merger PPT (link was posted on this board) showed that they were going to call the preferred, but did not specify when…

        The fact that it is trading $25.0x implies investors at large think it is likely to be called 12/12. If it does not get called that soon us buyers (at $25.0x) likely winners

        1. mS – well first of all, the time is already past for it to be called on 12/12 because of the required 30 day notice which I believe covers change of control as well…. Secondly, technically speaking, without giving an exact date (because it cannot yet be known), they have specified when C will be called – xerty was the first one to point this out and sorry I can’t provide the link, but, as mcg said, it will be called upon completion of the merger which will trip off change of control… Going by memory, I believe they’ve set a timetable range to be the first half of 2022… The exact date cannot be known exactly today, other than the day when the merger is completed and even then it most likely will still become subject to the 30 day announcement requirement. FWIW, I partially bot back today at 25.06 what I sold on 11/9 at 25.49. I think it’s a no brainer for C to remain outstanding at least until 3/15 for purposes of conservative calculations.

          1. 2WR, the investor presentation did indeed say that the transaction was expected to close in the first half of 2022, without further specificity. I picked up some at 25.40, so with the dividend, I’m OK so far. Assuming a call date of 6/15/2022, (perhaps optimistically), I figure a YTC of about 4.9% based on today’s close. Another parking space for the spare cash.

          2. Is there a required 30 d notice? Is that a requirement by SEC or other entity? I usually can find something like that in prospectus, but when I tried to read through that today, all I could find was “at any time,” IIRC. The press release said they expected it in first half of ’22, so it looks like it’s probably worth “stacking nickels.” TIA for further insights.

            1. As nhc said, that’s where it is, S-21…….. The notification time is almost always 30 days but there are exceptions – could be shorter (GDV-G is an example) or could be longer…. Most times there’s a range saying something like not shorter than 30 days or longer than 60, etc.

              And for trying to find where the language is in any prospectus, there’s always a section listed in the contents of the prospectus describing details of the type of issue being issued. For MNR-C prospectus, the table of contents lists “Description of the Series C Preferred Stock,” starting on p. S-17. You're also likely to see this info stated elsewhere as well, but as a timesaver, checking the Table of Contents will always bring you right to an area like this.

  20. Dividend capture ideas I’m watching for November

    AIRTP CDR-B CDR-C 10th
    PBI-B 19th
    Not much else until end of month
    Reit isssues for NLY MITT PMT AIC
    CTBB FGFPP PBC QRTEP STAR-I
    NS-A, -B, -C risky

    first week of december
    ATLCP IVR-B MFA-B

    1. CTBB has been callable since 9/1/2021. At least 3 Qwest preferreds have been called in the last 12 months, and CTBB is one of only two preferreds still outstanding. I believe there is significant risk in trying to flip CTBB for the December dividend of $0.40 versus the current price premium of $0.59.

      1. Thanks for the info. It’s low on my list I probably won’t buy unless it falls a few cents more. I’d risk a small loss on the odds that it’s called precisely in the few days I’d hold for the capture. More hesitant about the lack of upside when it’s pinned to par.

    2. Martin, only you could appreciate this. I flipped out of 400 or 500 (forgot already without checking, ha) SB-D for more SB-C and pocketed a 16 cent spread gain. Now I need C to overtake D down the road so I can get balanced back a bit again.

      1. Same here, Grid. Enough that I’m out of D completely and overloaded on C.
        Also – thanks much for the link to the Baltic Exchange Dry Index. Much appreciated.

        1. mbg, that chart is something else isnt it. Not a flat line chart is it? It is definitely worth watching to at least be aware of whats going on. We still have some breathing room, but Im keeping an eye on it.

          1. Now THAT’s volatility (for the month and year).
            Yes, it’s definitely worth watching, so I bookmarked it.
            I checked their forecast. They expect it to be higher, but only to 3,282 by next November. We’ll see … I suppose that’s why they say surprises move the market, Grid.

      2. I previously took the 7 to 9 cent gain. Miss the bigger gains get twice as many smaller gains, no harm no foul. Dumped a couple hundred shares too. For other short term plays, several div captures coming up and NYMGV. And got stuck with some RC-E I bought because it fell, now it keeps falling.

    1. Too volatile for me. I don’t like div captures on issues that bounce around a lot. Makes it hard to tell if the div capture strategy is working when it’s drowned out by other factors.
      Of course it could work out for you, just not my style.

  21. Anyone up for dividend capture on SLMNP? Someone is selling it for $1007 today, and it goes ex-div @ $15 tomorrow.

        1. Not sure how it can be trading normally. Do you see a bid and ask? I sure don’t. Closing only. This is ally.

            1. Schwab is more enlightened than others. The two I follow are KTBA and SLMNP. No bid or ask..but I can see trades. Also can enter buys and sells. Easy execution.

    1. To answer your question, No I didn’t buy any more because of the downside price risk due to the delisting nonsense. I already have a position in SLMNP and I’ll gladly dump some of it if the price pops enough on ex-div. Not letting go too cheap.

  22. CIM-A fixed 8% priced for a call but not called at the first opportunity. So I bought it with loose cash as if it were part of my sweeps fund. Positive YTC and worth 8% for every day it’s not called. Don’t see downside risk until lesser CIM- issues fall from above par.

  23. More divis in the bank coming from SB. I just bought some more C at $25.35 market open.
    MONACO, Oct. 08, 2021 (GLOBE NEWSWIRE) — Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that the Company’s Board of Directors has declared:

    a cash dividend of $0.50 per share on its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (the “Series C Preferred Shares”) (NYSE: SB.PR.C) for the period from July 30, 2021 to October 29, 2021;

    a cash dividend of $0.50 per share on its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (the “Series D Preferred Shares”) (NYSE: SB.PR.D) for the period from July 30, 2021 to October 29, 2021.

    Each dividend will be paid on November 1, 2021 to all shareholders of record as of October 22, 2021 of the Series C Preferred Shares and of the Series D Preferred Shares, respectively. Dividends on the Series C and D Preferred Shares are payable quarterly in arrears on the 30th day (unless the 30th falls on a weekend or public holiday, in which case the payment date is moved to the next business day) of January, April, July and October of each year.

    1. Isn’t that the normal quarterly dividend?
      There’s swapping between the SB’s, there’s upcoming dividend capture, and there’s moving in and out on price movement. Lots of moving parts for stacking nickels. My limit orders typically get filled in small quantities when they get filled at all.

      1. Ya, they just declared it. They always declare late. I flip maybe 2-3 times a quarter. Im not as vigelant I need a quarter or so to bother. Plus I got imbalanced with too many D and not enough C, so I got more C today. As you know, you cant switch if you dont have any to switch from, ha.

        1. That’s why I like to trade in small increments. Started swapping NRZ-B for NRZ-D at a 12 cent difference. Good thing I only traded a small amount, so I could swap more at 20 cents. Even then I was all out before it peaked so I just bought more.
          Whatever did I do back in the stone age when they charged commission? Avoided small trades so the fees wouldn’t add up.

  24. NRZ-D down on increasing volume. Underwriters closing out their position?
    24 cents lower than NRZ-B after it had been at least even and rightfully so. Partial dividend capture next week. I loaded up for the capture, for the swap into another NRZ-, or to keep some of it for awhile.

          1. NRZ.D is the clear winner though with that float rate plus 5 year treasury. 3 month libor is absolute garbage. Just compare the two today. At reset there is a good chance it will pay more then it’s temp fixed rate if I did my guess correctly. A and B.. the year 2024 is not terribly far away. Almost into 2022 now.

            Great post by the OP. I bought some. Not sure how comfortable I am holding long term but it should be ok for a bit. I missed a couple of chances of buying this for less so might as well take advantage today for a bite sized piece.

      1. I need to correct my post–8% is yield to worst. Tim, if time permit could you add NRZ-D to the master list? Thanks.

      2. NRZ-C has lower yield and lower floating rate. Only advantage is it’s so far below par it has less call risk and more potential upside if they all move up. I haven’t been including it in my rotation lately.

  25. Dividend capture possible with PEB-E and PEB-F. They are ex-dividend tomorrow and are trading slightly under $25. The coupons are around 6.30% and they have a newly issued preferreds trading at $26.05 (G with 6.38%) and $25.01 (H at 5.70%)

    1. Thanks for the tip on that, bought at 24.94 and sold yesterday for 25 plus the div. Nice flip, especially in an IRA!

  26. I’ve been catching the knife dropping on CLDT-A
    It’s ex-div tomorrow .48 and the last trade is 25.39.
    If bought at 25.39, you basically buy the 6.625% preferred at under par.
    Just a thought

  27. TDS-V the 6% coupon was issued August 10 and I bought an oversized position at $24.9x. Flipped to sell half near day highs $25.9x as intended. Aim to hold the rest past a few dividends and likely when it trades higher….

    Would appreciate knowing what others holding this or similar consider a ‘good flip amount’ to sell an oversized buy near or below par soon after issued…

    1. We hold both TDS-U and TDS-V and aren’t letting go of any of it. Can’t see any reason why – but then again, they weren’t purchased for flips. Plan to cash those 6-6.625% initial stated yielders for at least another 4yrs since anything with those yields and some quality to it is so hard to come by nowadays. Once they get about a year out from 1st call, we’re betting that they can be unloaded and you can book the rest/a majority of that last year’s dividends and move on. Then again, there is a lot of runway between now and then – so who knows. QDI is also a big draw and we’d be looking to add on dips into the 25.30’s or lower if the financials are still looking good.

    2. I have an overweight position in TDS-V, and plan to hold it long term. Given the current low interest rate arena, it is one of the few recent new issues with a 6.0+% dividend. And, I do not expect many new quality preferred stocks to be issued in the 6.0% range in the foreseeable future. Although it is just below investment grade, I believe that it is a quality stock and one that I am comfortable holding onto.

  28. NYMPT fell a dime below stripped par on high volume with ex-div coming up. Sold NYMTL and bought twice as much P.
    Swapped some NRZDP for NRZ-A at 25.36. Was hoping for a bigger gain but this looked like a favorable exchange.
    Wild things happen in big down days.

    1. I sometimes worry I am too wise for my own good. so. Opinions sought!

      PSEC A. on 9/20 s&P rating changed from neg to stable. BB

      b. today @ 23.67 @1500 or so

      c. x div 10/10 pay on 11/1, 5.35%

      d) bought @24.00

      e) smile to the bank or run & hide?

      Bill O

      1. Bill,
        Our preference is to play this with a PRIF holding such as PRIF-G (we own).

        Here are some reasons why, just to consider:

        – Take a look at the common on PSEC. Over the past ~14yrs, the price has been cut in half despite markets having rocketed higher. Tells us alot about management, or the possible lack thereof.
        – PRIF has term preferred offerings, so you can limit some exposure to rate risk with long dated bbonds or perpetual pfd’s.
        – PRIF offers ‘protection’ of a 200% asset coverage ratio requirement.
        – Prospect Capital Management is the investment adviser for Prospect Capital Corporation (NASDAQ: PSEC), one of the largest business development companies in the industry, as well as an operating member of the registered investment advisers of Priority Income Fund, Inc., and Prospect Flexible Income Fund, Inc.
        – PSEC-A recently came to market and is down 5.3% below par. PRIF-I recently came to market and it’s sitting slightly above par. There are reasons why this is the case and we think it has a story behind it, not just that PSEC-A is offered at a lower yield.
        – etc…

        Just some thoughts. Good luck whichever you end up going/sticking with.

        1. A4I:

          What exactly is the Priority Income Fund? Best I can tell is that it is a $700+ million registered, non-traded closed end fund comprised of loans (CLOs)?

          This non-traded fund issues preferred stock to goose its returns and pay high dividends to its investors? How does an investor buy and sell shares in the Priority Income Fund?

          Thanks!

      2. Bill O, I share your concern. Not sure what I was thinking when I bought the stock. But, I am currently planning to hold until after the 1st dividend payment and hope for a bounce in the price. Then I will make a determination of whether to hold or fold.

  29. CEQP- popped a lot last week over $9.70 so I dumped half and bought most of them back at $9.48 today. Somehow I see it recovered back to $9.66 at close. Might have to consider selling some again, ha.
    Doubt its a flip but I bought an entry position of common ALX at $253.75 of 50 shares today as a divi yield chase. Basically its owned by VNO and CEO. Bloomberg better never leave that building they own or it wont be pretty for ALX. Anybody else watch this reit?

    1. I bought ALX two weeks ago and also a little more last week. I did not buy ALX for flipping, I bought it hoping to have a rising dividend over time. I hope that it works out that way, but there might be some retail problems that make that difficult. If there is an announcement that Bloomberg is leaving, it will get ugly for ALX. I am hoping that is not going to happen, but I have no insight on what Bloomberg will decide. Glad to see you consider these type of investments beyond fixed income securities.

      1. Xyx, I think its leased until 2029, so no stress near term with it anyways. The whole outfit is ran by VNO management and has voting control also.
        Is it better than owning VNO? I dunno that either. I just recently reentered VNORP at $80, so I guess I own them both for better or worse.

  30. This is about flipping and profiting but not necessarily dividend capture.
    This one is over and done with and I have moved on. But a example of picking up pennies and dimes using a stock that is being bought out. Maybe next buyout offer on MNR would work the same.
    08/24/2021 07:00:55 Bought 500 LMRK @ 16.15
    08/25/2021 09:35:59 Sold 500 LMRK @ 16.25
    08/26/2021 13:56:02 Bought 1000 LMRK @ 16.16
    08/30/2021 10:24:53 Sold 1000 LMRK @ 16.30
    09/01/2021 09:27:40 Bought 1000 LMRK @ 16.21
    09/02/2021 09:35:11 Bought 1000 LMRK @ 16.20
    09/02/2021 12:24:48 Sold 1000 LMRK @ 16.32
    09/03/2021 13:09:19 Sold 1000 LMRK @ 16.3201

    1. That’s why low yield on an imminent call isn’t so bad. They trade in a predictable range make a few trades and your 2% YTC becomes like 10% or so.
      Surprised all of your trades are round numbers. I get plenty of partial fills when using that strategy. But then I’m bold with my limit order prices.

  31. For the SB-C and -D holders:

    Good opp now to flip the C for the D:
    Ask on D is 25.50 (bid 25.41)
    Bid on C is 25.56 (ask 25.68)

    Maybe you’ll even get some price improvement

    1. Good flip if I weren’t already flipped.
      I get greedy with limit orders looking for more than 6 cents. Or I’ll trade a small amount to see if I get price improvement before doing more.

  32. “With no income from CAI just this quick flip profit, theoretically, does it matter that it issues a K-1? Am I saddled with waiting for a K-1 to arrive before I can do taxes”

    All the boxes in the K1 should be blank in which case you don’t need to file it. However, in some rare cases it won’t be blank. So, yes you need to wait for the K1. Or you can file you taxes and if you get unlucky and the K1 isn’t blank, then file an amendment.

  33. Dividend capture ideas for September
    BW-A EP-C Tuesday 14th.
    CIM-B, -C, -D 16th. I loaded up on B adding whenever it’s the lowest priced
    GDV-G 17th. and many other Gabelli’s. small gains.
    STL-A 23rd. bank

    due soon, not yet declared
    SACH-A SCCB TFSA JMPNZ OXSQL

    many at end of quarter. I’m following
    SRG-A 29th
    FRGAP 30th
    NYMTM, N, P. I like P higher rate and fixed but limited upside it’s callable.
    AGNCP, M, O. modest yield to call.
    XOMAO, P. wild lately.
    CAI-A, B. issues K-1.
    LFT-A
    DX-C
    AFINO, P. high price, seems to be holding.

    1. Martin, the baby bonds you have there are never declared by companies. Its just whenever they are posted on brokerage sites. Baby bonds are legally binding payouts and no declarations are needed. Capital stock traditional preferreds do need board declarations.

      1. I don’t know what the ex-div date is until somebody lists it. I said “declared” but that’s not what I meant. You’re not a mind reader?

      2. Record dates for bonds are in the prospectus, and only vary if they land on a weekend.
        e.g. here is SCCB’s.
        Regular Record Dates for Interest
        March 15, June 15, September 15, and December 15, beginning June 15, 2019.

    2. Martin – I try to avoid K-1’s completely…. How/why should CAI-A, B be subject to a K-1 and how is one to have known that in the first place? On the surface, structure wise, it doesn’t automatically fit the mold does it?

      Also as a very naive question from a K-1 hater, I owned CAI-B for a total of 5 days only – bot at 25.32 and sold at 25.70 on 8/26 and 8/31….. With no income from CAI just this quick flip profit, theoretically, does it matter that it issues a K-1? Am I saddled with waiting for a K-1 to arrive before I can do taxes just because of this one time quick flip? I figure I should already know this stuff, but I really haven’t a clue.

      1. My mistake I confused it with something else. I’m hyper focused on the numbers I use and don’t pay enough attention to other pesky details. CAI is low on my list of issues I follow.
        Between you and grid I got a D on this essay.

      2. The IRS computer matches what is reported to it to what the taxpayer reported. ANYTHING that is reported to the IRS that doesn’t match what the taxpayer reported could easily be flagged by the computer. I try to report everything that is reported to the IRS to avoid receiving notices from them asking me to report it.

        However, I did find this to help with your question. Go to the bottom if you hate reading.

        “First, it’s not unusual for income that is reported on Schedule K-1 to get reported to you later than other tax forms. The entities that generate these forms are generally on the same calendar year as you are, so they need time to prepare the returns and get the forms to the beneficiaries. Since this is an inheritance, an estate return would need to be filed first.

        As for whether you need to amend your return, it will depend on what is on the Schedule K-1. A Schedule K-1 is a reporting form which will report to you the items of income generated by the estate which are normally distributed to the beneficiaries. This can be a broad range of income depending on the assets of the deceased person. If they had substantial investments, the K-1 will report your share of interest, dividends, and capital gains, plus any associated deductions. If the deceased owned rental properties or a business, the K-1 will also report your share of the income from those activities.

        If the income items on the Schedule K-1 are sufficiently large, they will generate additional taxes due on your individual return, which will require you to amend the return. It is also possible that the K-1 items may generate a refund for you. You will want to “run the numbers” to determine the effect the additional information will have on your taxes. If the amendment shows little or no tax due (under $100), you generally do not need to file the amended return. A larger liability would require you to amend. Generally, the omission of income reported on Schedule K-1 from your return will generate an IRS notice regarding the missing income if it is substantial enough to generate a tax liability. If you wait for a notice to be issued, it can result in substantial penalties and interest being assessed in addition to the taxes due.”

        https://www.taxaudit.com/tax-audit-blog/do-i-have-to-amend-my-tax-return-when-i-get-my-k-1

      3. On a related note, anyone who owns Compass diversified will be getting a 1099 for their payments in the future.

        1. On CODI the common, you will be getting a 1099. On the preferreds, I would expect the same thing but I don’t recall those securities being specifically discussed as part of the “tax conversion” that CODI recently completed and had discussed on earnings calls.

          I would guess they will also be 1099 DIV payments beginning with the conversion date moving forward.

      4. “With no income from CAI just this quick flip profit, theoretically, does it matter that it issues a K-1? Am I saddled with waiting for a K-1 to arrive before I can do taxes”

        All the boxes in the K1 should be blank in which case you don’t need to file it. However, in some rare cases it won’t be blank. So, yes you need to wait for the K1. Or you can file you taxes and if you get unlucky and the K1 isn’t blank, then file an amendment.

  34. PRIF-H looks like the initial dividend is $0.60 with an ex dividend date of 9/14. It’s trading at $25.01 ask and looks like a good dividend capture

    1. Fred, Thank You.
      I picked up 200 shs at 24.99 and trying to buy 300 more shs for 25.
      After the .60 dividend, The issue is a value at 24.40 after ex date.

    2. PRIF-H – the dividends are only partially QDI and even include some return of capital. Also, a bit poorer than many others on the transparency scale as the issuer parent does not list or trade public.

      It’s cousin PRIF-J with same 6% coupon and not due till 2028 trades even lower at $24.8x. Isn’t this better than PRIF-H?

      1. The J shares were just issued in August and I do not believe they are paying a dividend in September

        1. Prif-j prospectus:
          Quarterly dividends are scheduled to be paid on March 31, June 30, September 30 and December 31 of each year, commencing on September 30, 2021.

          I decided to pick up some of h and j.

    3. Fred: I have a few shares of PRIF-H but I thought they only paid $0.375 ? If they are paying more than that may I ask where you found that information ?

      1. The first Dividend Period for the Series H Term Preferred Stock will commence on the Date of Original Issuance and end on, but exclude, September 30, 2021.
        I believe original issuance was beginning of May, so this one is 2 months extra long.

        1. The Date of Original Issue is May 6, 2021 And Bill, in answer to your “where” question, when in doubt always start with the prospectus…. Of course you do sometimes have some problems finding what you need because like this one, they didn”t put the Date of Original issue info in the same place as they put the first dividend date into – all, naturally for your convenience’s sake…….

          1. Not sure if it was you 2WR but I have both the H & I for several weeks now. Why they delayed payment and Irish is saying J will pay first qtr. is odd

  35. QTS-A with a 7.125% coupon a decent divd capture play?

    Parent QTS being acquired by Blackstone but unsure when they can call this befoe its call date in 2023.

    1. mSquare – have you read the merger press release or any of the merger docs? A token amount of due diligence goes a long way.

      1. My reading suggests they can and likely will call QTS-A due to the buyOut but not 100% sure as to the when…

        If they Call it Oct 1 with a 30 day notice, you still get the next dividend

          1. Assuming QTS-A is called 8/31 then one should expect 2/3rd of the dividend i.e. past 6/29 last ex-divd date ie about $0.31 or is it after last dividend paid 7/15 so only half a quarter so $0.22-ish?

            Either way, a bit more than $25.1x you could have bought it for today.

          2. M could you clarify or show a link supporting that?
            I read the original prospectus that says at close of change of ownership or delisting of shares on all exchanges stock is listed on they have 120 days to redeem the preferred at par plus any unpaid dividends adjusted from date of payment.
            I also looked at the merger announcement by Blackstone and it says QTS A &B will be delisted on all exchanges at close of merger. But I don’t see the words “redeemed, called” etc.
            My WTREP has been delisted but they haven’t announced a call on them yet.
            So where does it say my shares have been called?
            I am still learning here and not sure how to research this

          3. How can they Call without the mandatory 30 day notice? How can change of control clause bypass a rule that is not theirs to change?
            Not that I’m complaining. If you bought below stripped par today you’d actually have a higher YTC the earlier it is called.

          4. My QTS-A shares didn’t get redeemed today. Do I need to actively claim it like in a tender offer? One of the press releases seemed to suggest that, though it isn’t a tender offer it’s a redemption.
            I’m beginning to see why people sell this delisted crap at a loss. Nobody knows what the hell is going on.

            1. Martin – I’m relying on what IR told me that if you owned QTS-A you didn’t have to do anything to get paid the amount of 25.23xxx that they published…It will be done automatically. It’s not surprising imho that we weren’t paid today just because of red tape, but no question I’m keeping a close eye on what happens next… I’ll even wait thru tomorrow though before questioning.

            2. No, you don’t. Its a merger redemption- you’ll get it tomorrow probably. I already had one broker pay out.

            3. Martin TDA cashed me out today and even charged me a fee.
              Wonder what that was for.
              Now have to look for something else.

  36. AQNU Algonquin power is ripe for a flip and/or dividend capture. Down 77 cents today with x-div on the 31th.

    1. Extremely low coupons don’t make the best dividend captures. I’d be more interested in why it fell, that could be a reason for a flip. I generally avoid mandatory convertibles too, they’re tied to the common stock price.

      1. Martin:

        AQNU is not an extremely low coupon. You are being paid 7.5%+ to wait for 3 years to see if AQN advances. AQN is one of the few utilities which has a huge renewables business.

        I own a very small position in AQNU.

        1. Not necessarily. You’re getting paid 7.5% to wait and are exposed to AQN price action in the interim both higher and lower. Mandatory converts usually trade at fair value of the common so you should buy whichever one is trading at a discount to the other. I’ll agree that mandatory converts make bad dividend capture trades.

    2. AQNU is a mandatory convert. If the common goes lower the AQNU would go down in proportion – especially below $15. So risks a ‘normal’ preferred does not have…

      Unless you love the company (common stock), you may be better srved by looking at the company’s AQNA or AQNB with yields of 5-6%

      1. for what it’s worth – AQN is almost universally loved by CDN PM’s as an excellent combination of a utility and green energy company. Full disclosure I’ve held common for years with excellent results and also pref’s. They did recent hybrid equity unit issue for future expansion which caused drop in price .

      2. Here are some quick numbers on AQNU vs AQN. If the stock trades up 25% over the next 3 years till maturity to $19.49 your return on the common will be 38.16% (including dividend but not dividend increases), while your return on AQNU would be 28.18%. On the downside if the stock falls 25% to $11.69 your return on the common would be -11.84%, while your return on the convert would be -1.37%.
        If the stock is flat your return would be 13.16% (3 years of dividends), while the return on the convert would be 20.13%.
        Depending on your view of AQN and your current risk tolerance, AQNU is an attractive alternative in a flat or down scenario, while AQN would be a better alternative on the upside.

        1. Chris…I calculate the flat return on AQNU as 23.25% (7.75% per year x three years). What am I missing?

          1. First, you’re buying the convert at $51.30 so the yield is 7.55% * 3 or 22.66%. Secondly, If the stock doesn’t move the convert will be converted into common shares equaling the equivalent of $50 (3.20718 shs), so the convert will get 22.66% in income but lose 2.53% in principal for a total return of 20.13%.

            1. None of the previous comments take into account the 1.18% note included with AQNU. Should this note be considered in the calculations ? Thanks.

              1. It is buried inside the 7.5% coupon.

                as an FYI. here are the dividends coming up with ex-dates next week.
                CUSIP SEC TYP TICKER RATE EX-DATE PAY DATE and days from ex-date to pay date
                210518304 PREF CMSprB 1.13 20210903 20211001 28 CONSUMERS ENERGY CO PFD $4.50
                Y2687W116 FPRE GLOPPRA 0.54 20210907 20210915 8 GASLOG PARTNERS LP PFD UNIT SER A
                G9078F123 FPRE TRTNprA 0.53 20210903 20210914 11 TRITON INTL LTD 8.5% CUM RED A
                Y2687W132 FPRE GLOPprC 0.53 20210907 20210915 8 GASLOG PARTNERS LP 8.50 PFD UNIT C
                Y2687W124 FPRE GLOPPRB 0.51 20210907 20210915 8 GASLOG PARTNERS LP 8.20% PFD UNIT B
                G9078F131 FPRE TRTNprB 0.50 20210903 20210914 11 TRITON INTL LTD 8% PFD CL B
                78442P502 PREF SLMBP 0.46 20210902 20210915 13 SLM CORP PFD SER B
                G9078F149 FPRE TRTNprC 0.46 20210903 20210914 11 TRITON INTL LTD RED PERP PFD C
                G9078F206 FPRE TRTNprD 0.43 20210903 20210914 11 TRITON INTL LTD RED PFD SER D
                G7293H189 FPRE PUKprA 0.41 20210907 20210923 16 PRUDENTIAL PLC PER SUB 6.50%
                368802401 RICP GAMprB 0.37 20210903 20210924 21 GENERAL AMERN INVS INC PFD B 5.95%
                29452E200 PREF EQHprA 0.33 20210902 20210915 13 EQUITABLE HLDGS INC DEP SHS RP PFD A
                39138C809 FPRE GWLOF 0.29 20210901 20210930 29 GREAT WEST LIFECO INC PFD 1ST F 5.9%
                29452E408 PREF EQHPRC 0.27 20210902 20210915 13 EQUITABLE HLDGS INC 4.300% DEP PFD C
                51925D825 FPRE LBprH 0.20 20210903 20210915 12 LAURENTIAN BK CDA QUE PFD SHS SER 13
                Press any key to continue….Detail REIT’s
                46131B407 REIP IVRprB 0.48 20210902 20210927 25 INVESCO MORTGAGE CAPITAL INC PFD-B FX/FLT
                46131B506 REIP IVRprC 0.47 20210902 20210927 25 INVESCO MORTGAGE CAPITAL INC RED PFD SER C

                REIP= REIT Preferred
                FPRE= Foreign Preferred

                and here is the list that go ex- on Tuesday
                62886E207 PREF NCRRP 13.75 20210831 20210910 10 NCR CORP NEW 5.5% PFD CNV A
                00850L203 PREF AGRIP 1.72 20210831 20211001 31 AGRIBANK FCB NON CUM PFD FX A
                30767E406 PREF FCTXZ 1.69 20210831 20210915 15 FARM CR BK TEX PFD SUB CLB S2
                G6095L117 FPRE APTVprA 1.38 20210831 20210915 15 APTIV PLC 5.5% CNV PFD A
                48251W401 PREF KKRprC 0.75 20210831 20210915 15 KKR & CO INC 6% MCONV PFD C
                30259W203 PREF FGFPP 0.50 20210831 20210915 15 FG FINANCIAL GROUP INC 8% PFD SER A
                032359846 PREF AFSIM 0.48 20210831 20210915 15 AMTRUST FINL SVCS INC DSHS 1/40 PF E
                032359705 PREF AFSIC 0.48 20210831 20210915 15 AMTRUST FINL SVCS INC DEP 1/40 SR-C
                032359887 PREF AFSIP 0.47 20210831 20210915 15 AMTRUST FINL SVCS INC DEP SHS PFD
                032359507 PREF AFSIB 0.45 20210831 20210915 15 AMTRUST FINL SVCS INC DEP 1/40 PFD B
                032359820 PREF AFSIN 0.43 20210831 20210915 15 AMTRUST FINL SVCS INC DSHS 1/40 PF F
                032359408 PREF AFSIA 0.42 20210831 20210915 15 AMTRUST FINL SVCS INC PFD SER A
                48251W302 PREF KKRprB 0.41 20210831 20210915 15 KKR & CO INC 6.50% PFD SER B
                7591EP886 PREF RFPRE 0.40 20210831 20210915 15 REGIONS FINANCIAL CORP NEW DEP SH PFD SER E
                03768E303 PREF APOprA 0.40 20210831 20210915 15 APOLLO GLOBAL MGMT INC 6.375% PFD SER A
                03768E402 PREF APOprB 0.40 20210831 20210915 15 APOLLO GLOBAL MGMT INC 6.375% PFD SER B
                7591EP506 PREF RFprB 0.40 20210831 20210915 15 REGIONS FINL CORP NEW DEP SHS PFD B
                989701859 PREF ZIONO 0.39 20210831 20210915 15 ZIONS BANCORPORATION DEP 1/40TH PFD SERIES G
                860630706 PREF SFprB 0.39 20210831 20210915 15 STIFEL FINL CORP 6.25 DPSHS PFD B
                860630870 PREF SFprC 0.38 20210831 20210915 15 STIFEL FINL CORP DEP REPSTG SER C
                045487204 PREF ASBprE 0.37 20210831 20210915 15 ASSOCIATED BANC CORP DEP SHS PFD E
                88224Q305 PREF TCBIO 0.36 20210831 20210915 15 TEXAS CAP BANCSHARES INC 5.75% DEP PFD B
                045487402 PREF ASBprF 0.35 20210831 20210915 15 ASSOCIATED BANC CORP 5.625 DP PF SR F
                712704204 PREF PBCTP 0.35 20210831 20210915 15 PEOPLES UNITED FINANCIAL INC PERP PFD SER A
                045488608 PREF ASBprD 0.34 20210831 20210915 15 ASSOCIATED BANC CORP WIS DEP PFD NONCUM D
                06053U601 PREF BACprM 0.34 20210831 20210927 27 BANK AMER CORP 5.375 DEP PFD KK
                947890505 PREF WBSprF 0.33 20210831 20210915 15 WEBSTER FINL CORP CONN DEP SHS RP PFD F
                06055H202 PREF BACprN 0.31 20210831 20210917 17 BANK AMER CORP DEP SHS PFD LL
                89346D727 FPRE TSLTF 0.26 20210831 20210930 30 TRANSALTA CORP PFD-E
                007924509 FPRE AEB 0.26 20210831 20210915 15 AEGON N V PERP CAP FLTG RT
                98973A104 PREF ZIONP 0.26 20210831 20210915 15 ZIONS BANCORPORATION PFD 1/40 SER A
                85513Q202 PREF STRRP 0.25 20210831 20210913 13 STAR EQUITY HOLDINGS INC PERP PFD SER A
                842243206 PREF SBNCM 0.23 20210831 20210915 15 SOUTHERN BANCSHARES N C INC PFD CV B
                842243305 PREF SBNCN 0.23 20210831 20210915 15 SOUTHERN BANCSHARES N C INC PFD CL C

            2. Ok…got it. Wasn’t sure if you were quoting from the prospectus or not.

              I like the coupon and three years of call protection.

  37. First (partial) payment on Brookfield 6.25% BPYPM:

    In addition, the distributions on the new series of preferred units of Brookfield Property Preferred L.P. (NASDAQ: BPYPM; TSX: BPYP.PR.A) are cumulative from the date of original issue (July 26, 2021) and are payable quarterly in arrears. The Board of Directors has declared the pro-rated initial distribution on these preferred units of $0.2734 per unit payable on September 30, 2021, to holders of record at the close of business on September 1, 2021.

    1. Not sure how to start new thread. Does anyone know ex div date for psec-a?

      payment in Sept. last quote in mid 24’s.

      1. bill o – As is convention for all issues, your answer is found in the prospectus…. Assuming quantumonline is correct, first payment isn’t until Nov 1, not in Sept. The Ex-Div date range (no specific date is designated) is spelled out in the DESCRIPTION OF THE SERIES A PREFERRED STOCK section of the prospectus as linked on qol…. Happy reading…….

        1. 2WR, Do you still own EP-C? I bought it pretty hard for me about a month ago for the zillionth time around $50 and it went crazy last couple days and also today, and I am back out again. QRTEP went crazy also. I bought again maybe a week or so ago and its already up $2. Crazy stuff.

          1. Grid – Yes I do still own both.. to be honest, I had not noticed how hard EP-C has rallied (thanks for pointing it out!) but as you know I had done a relatively aggressive (for me) sell and buy back in February that captured about 4 points in 2 days but I doubled up on what I sold and ended up with shares bot at around 51.50 to add to my other shares bot previously as low at 46.26. Will have to figure out what to do if anything.

            I had noticed QRTEP but not today’s move. Thanks to your previous post pointing out your early dividend capture purchase at 107.90 I did take a look at what yields were on this one at those levels and was amazed how cheap it was relatively speaking as a 10 year term preferred with a premium first call that I believe makes the ’27 “par” call the YTW. Trying to bid for a round lot failed as I kept being bid up by the pros.. So on Tuesday I put in a bid for 75 only and got them on the opening at 108.25, a price that doesn’t even show up as having been possible on that day… Go figure…. Also, BTW, I was very impressed with the company and their respect for my wife’s privacy when in their quarterly report they said without naming her specifically, “We delivered strong increases in apparel and accessories and growth from our best customers at QxH.”

            1. 2WR, Well EP-C unsurprisingly made its round trip back down. So after flipping out at $51, for a relative quick buck, I repurchased them all back again 5 days later at 50.20 and under today. Goes exD in a month, so maybe there will be another run again before exD.

                1. Its one of my favorites, Furcal. Funny how people will chase it to $51, and then someone turns around and dumps it back to near par. I like keeping a certain amount of investments with some reasonable duration as a back stop.
                  I doubt this one has any flipping juice, but I bought 400 of RMPL- at 25.30-31, mostly for its relative price stability and 2024 maturity. It doesnt trade much or move much, so I took the chance when they were laying there. It is redeemable so entry point matters here.

                  1. Thx for the tip Grid. Bought a few more thousand a little bit ago. Had some cash from a few weeks ago from gains. Probably next week someone wants to buy them from me over $51/share

      2. bill o
        New threads are initiated at the BOTTOM of each section;
        Scroll down to the end and there you are.
        howard

      3. bill o
        new threads are initiated at the bottom of the section.
        scroll down all the way.

  38. If you like to leap into the dumpster bin ATLCP is finally showing signs of life. And look at the common stock chart…Wow why didnt anybody tell me to buy that thing 6 months ago.. Anyhow.. Its creeping towards par finally and its going to go exD someone time this month and pay a fake oversized first divi. So its going to pop up as an 8% preferred when its finally posted as here is the first divi and stub that is payable about 9/15. Notice the issue is a 7.625% one. And yes I own this and bought more a couple days ago as it dredged its way up into the 24.70s.
    The first dividend, which is scheduled to be paid on or about September 15, 2021 in the amount of $0.49774 per share of Series B Preferred Stock, will cover the period from, and including, the first date we issue and sell the Series B Preferred Stock through,

    1. I bailed out for break even, partially. Kept 200 shares in a thinly traded account, just because. Long forgotten.

      1. Martin, It has ran out of the IPO gate as fast as PSA-P has. They both have needed oxygen and wheel chairs to move, lol. I got my initial batch around 24.60 and bought some more in mid 24.70 recently. I have done better recently daily trading the old veteran issues. Well except for METCL which did what it was supposed to do. I started peeling back that onion today near $26.20, but am still holding a decent amount. The fact they can redeem this in 2 years keeps me from trying to ride it too hard.

      2. Martin, I forgot to tell you. You will get a kick out of this being a fellow SB-C/D honk. Out of boredom this morning I flipped 400 of my SB-D shares at 25.21 for 400 shares of SB-C at $25.13. This may make the hall of fame of meaningless flips. But I was unbalanced and now I have flipping firepower either way as I had wound up on one side of the boat holding only D recently.

        1. I tried to do that swap for 7 cents yesterday but didn’t get a fill at 25.14. Today I was bidding on the SB-D repurchase instead. A free 5 or 10 cents per share isn’t meaningless to me I do it all the time while I’m in there looking for bigger fish to fry.

          1. Martin, Dry Bulk Index just hit 11 year high…
            The Baltic Dry Index surged about 2% to 3,566 on Friday, its highest level since mid-2010 and extending gains for a fourth straight session, helped by improving demand, congestion in Chinese ports, and weather concerns in the Pacific. The capesize index, which tracks iron ore and coal cargos of 150,000-tonnes advanced 3.4% to a four-month high at 4,766; and the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and grains, increased 0.5% to 3,566 a peak since July 21 at 3,566. Among smaller vessel, the supramax index rose about 19 points to a fresh all-time high of 3,098. The Baltic Dry Index posted a 5.8% gain for the week, its best in eight. . source: Baltic Exchange

    2. Grid, I tend to avoid dumpster diving for the most part, as I cannot stand the stink. But I made an exception for this one time, held my nose real tight, and bought a small position in ATLCP at $24.90.

      The larger than normal dividend helps, and it might also give the wrong impression to naive investors who extrapolate the div amount to a full year, and buy in the mistaken belief the yield is great ( I would likely flip this one ).

      1. Inspy, either way we blew it already. The common ATLC hit 52 week high today closing at $47.50 and is up 92% YTD and 450% in past 52 weeks.

  39. Dividend captures I’m following for August

    TECTP 5th
    GNE-A 6th low volume
    GMLPF due soon not yet announced
    AIRTP 12th
    UMH-C UMH-D 13th high price
    SCHW-D 16th ye old call risk
    PBI-B 20th
    and looking ahead to end of month
    MITT-A MITT-B MITT-C AIC QRTEP IVR-B IVR-C

    1. Martin, I jumped in on BPYPP at $25.35 this morning for a divi capture as it goes exD at end of month. I already jumped back in QRTEP for same reason last week at 27.90. I tend to buy the divi captures a few days earlier as it seems at times I take it too close and it spikes immediately before I pull the trigger… TECTP I have just been sitting on a full position and holding it for time being.

      1. Grid,
        Last Friday, I got a little BPYPP and BPYPM after someone posted they were tanking. Was that 27.90 for LBRDP?

        1. Ugh, Now I understand why MGB was asking. Ya, I was converting to $25 for some unknown reason. I bought at $107.90 last week. I wish it was $27.90, lol..

  40. Since ALIN-s have been moving wildly. I jumped in so I could trade between them and in and out of them. Made some money on the swings already, though it is a high risk strategy. Not for the feint of heart.

    1. If anybody still has ALIN-B now is a good time to swap it for ALIN-E at a lower price for higher yield if ever salvaged. Friday it was as much as 85 cents higher. Wild free falling stocks can have those opportunities.

      1. Make the switch if only to capture the loss for tax purposes. Your basis is almost certainly higher than present price.

        But don’t sell and rebuy the same issue! That is a wash sale and the loss is disallowed.

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

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

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

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

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

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

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

  42. Tsakos preferreds;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          Best

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                      Nice chat we had with pendy.

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