While the $25 preferreds remain fairly steady–off a penny–there is plenty of action in various individual issues today.
The biggest standouts are the 5 preferreds from American Homes 4 Rent – the issues went ex-dividend today. While the shares were ‘marked down’ for the ex-dividend date they have fallen plenty past the normal markdown. For instance the AMH-H issue which has a coupon of 6.25% would be marked down by 39 cents for the ex–but has fallen another 50 cents beyond the normal markdown.
Readers are cautioned that the Google Quotes DO NOT show the markdown for the ex dividend–instead for 1 day it shows the ex dividend date plus the further decline–for instance on AMH-H it shows the issue down 87 right now.
The American Homes 4 Rent preferreds have now all fallen into the range where they have current yields above 7%. We made a small purchase of the AMH-D 6.50% coupon issue with a current yield of 7.17% for a long term hold.
The Farmland Partners Participating preferred (FPI-B) is being slapped down mightly–down $1.05. We wouldn’t touch this one as FPI management is highly suspect (in my opinion).
Some quality perpetual issues are again being marked down–Digital Realty 6.35% (DLR-I) down 77 cents, First Republic Bank 5.625% (FRC-D) down 75 cents, and First Republic Bank 5.70% is off 72 cent. The FRC and DLR issues are ex dividend today–but have fallen beyond the ex amount by a goodly sum.
Abnormally high volume is seen in the Gabelli Utility Trust 5.375% perpetual (GUT-C) at 4.4 times normal volume, and the Bank of America 3% minimum floater (BML-H) is seeing volume 5 times normal–this issue is now trading with a current yield of 4.03% at $18.65%.
We also note that the KIMCO 5.25% perpetual (KIM-M) is trading higher by 12 cents on almost 3 times normal volume. As we had exchanged comments with some readers on the KIMCO issues seem to being bought the last 2 days on higher volume. Current yield are getting to the 6.50% area for investment grade perpetuals of KIMCO.