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.
ABR-D has been cheaper than ABR-E lately even though it pays more and otherwise the same thing. Good swap for those who do such things. Then I’ll trade back when the prices correct themselves. Double the return when the market is inefficient enough.
MFAN first dividend 73 cent div capture next week I’m all in don’t prove me wrong. MITN and MITO below stripped par higher div for somewhat more risk also first ex-div Aug 1st. Other newbie baby bonds such as NYMTI slightly below stripped par. I’m not sure how to play this new breed of BB’s I’m more familiar with perpetuals. Dividend rates have become very close but the perps have price upside and more volatility for whatever that’s worth.
MFAO has the first dividend of 73 cent.
Correct. They all run together in my brain after awhile.
End of quarter is a busy time for dividend captures. Next week offers NYMT AGFNC CHMI EFC ACR GPMT XOMA DX RWT preferred issues, among others. Flip them and buy early April ex-div ABR RITM TWO DBRG CIO NREF.
Dividend captures weren’t as profitable last year with the rising rates. Hopefully the tide is turning. I’ve had a few good ones lately but offset by one loser.
Roche (RHHBY) is a very high quality pharmaceutical company. Like many European companies it pays an annual dividend. They will pay it in just a few weeks- if anyone is interested. I added to my position this morning.
The issuers of TPTA and TFSA merged in 2022. Does anyone know why these two baby bonds, with similar terms, trade at a wildly different YTM?
LANDP available at around $1 cheaper for anyone who holds the O. Good swapping opportunity.
Interesting BB14
It has a lower float
Where did you see that it floats?
Martin, that is not the float you are thinking of. This version of “float” refers to shares outstanding in a particular issue, not a floating rate as you are thinking of.
My head is spinning. How does it make that much difference?
Im not suggesting it is or it isnt as I have seen it work both ways. I was only explaining what he meant by “float” so you knew that it meant shares outstanding not a floating rate issue.
It makes a difference because of supply and demand… it’s why one ran ahead of the other…..
I traded between LANDP and LANDO a couple times for a couple nickels. Thought I had a good thing going. But O has been higher for some time. I guess I’ll have to settle for 8% divvy and some upside.
Lpoading up on ABR TWO RITM preferreds or ex div this week. Dividend capture strategy was not quite as effective during the rate increase price drops. Now might be the time to get back in the game.
Martin, the CODI pfds go ex- tomorrow.
If interested, huge dump on CODI-B.
bid ask = 24.48/24.51. Down 2.4% on the day.
CODI-C (same coupon as -B) bid/ask = 25.00 / 25.27
-B floats in April 2028. -C is a perp.
Thanks for the heads up I bought some. Waiting for the bounceback.
You got it. Me too – waiting for the rebound.
I bot some in the low 24.50s. With the 24.22 bid, it’s already worked as a div capture, but since it appears to have just been a dump, and today with CODI-C still much higher than -B, a rebound coming soon seems reasonable.