Yesterday we had a good example of someone who was “asleep at the wheel” as someone bought just a little over 700 shares of the Kayne Anderson 3.50% Mandatory Redemption preferreds (KYN-F) at $25.36-$25.38. This was 30 cents above the last trades and the shares have traded between $24.95 and $25.15 all year.
The shares go ex-dividend for 7.3 cents on the 14th–a heavy price to pay to capture a 7.3 cent dividend.
Just a reminder to newer income security buyers (and sellers) that you must always use limit orders to buy or sell securities that are somewhat illiquid. If you don’t use limits you will pay a heavy price for entry to the income security arena.
Disclosure that we own around 2,000 shares in this issue (and our returns sure looked good yesterday–certain to reverse today).