Monthly Paying Preferred Stock List

While the number of preferred stocks paying monthly dividends grows smaller and smaller there remains a group paying that way and some of them are our favorites.

Our listing is complete (I think) and includes just preferreds.

Of course many of the issues outstanding are from the many Gladstone companies that are out there.  Gladstone Investment and Gladstone Investment are both BDC’s and while we likely will seldom own a BDC we own most of the preferreds.  Many of the Gladstone issues are “term Preferreds”, but not all.

Some of the issues are from Puerto Rican banking (or finance) companies.  First Bancorp, OFG and Popular Bank are all Puerto Rico based.  Whether being in Puerto Rico is a plus or a minus we leave up to the investor.  We do not currently own any of these issues.

One should note that a good share of all of the issues are now in the optional redemption period.  Honestly we like to buy issues trading in the optional redemption period as long as they are not more than a dividend or so above the liquidation preference ($25).  Issues paying a monthly dividend trade with less volatility–part of it is simply that on ex-dividend date they are only marked down by a month dividend instead of the quarterly amount.  Additionally the monthly payers provided a nice monthly stream of income.  Lastly we always say “a bird in hand is worth 2 in the bush” and it is always better to have the money in our pocket rather than the companies pocket.

The list is here.


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