Early yesterday I sold 2 of my small bank positions.
I sold the Heartland Financial 7% Fixed Rate Reset preferred (HTLF-P) at $24.30. Including dividends I had a total return around 8%.
I sold the CNB Financial 7.125% fixed rate preferred (CCNEP). I held this for a very short time and realized a 4% gain–no dividends received.
My logic here is simply to raise a little cash by selling a few issues which I believe will present another buying opportunity in the months ahead. Moodys is pounding on the banks and there are predictions everywhere of issues with the banks. While this may all be BS in the short term there could be (is) some pain.
I was fortunate in my timing on Tuesday because my GTC orders executed early in the day as banking issues got beaten later in the day. Numerous issues which I hold have given up 50% of my gains, although 100% of them remain in the green–although some only 1-2% (plus dividends).