I will be adding a new link titled “Sandbox” in the right hand menu.
That link will get you to this page.
I had originally set up the “Reader Initiated Alert” page for ‘alerts’. I was thinking this, for instance, might be when a preferred stock is undergoing a temporary selloff and someone wants to let the population know about it quickly. Of course we all (including me) use the ‘alert’ page for general messaging.
I am requesting that we start using the Sandbox page for all general talk, and try to preserve the ‘alerts’ page for ‘alerts’.
I have had a screen up on one of my monitors all week where I see all comments – no matter where they are posted–it is a great page and I wish everyone had a page like that–believe me we all benefit from all the knowledge being shared. I don’t want to stifle any of the exchange of knowledge, but hope to get things a bit better organized by adding the Sandbox page.
Recently this was some discussion on Land O’ Lakes preferred/bonds. Would someone be so kind to direct me to that discussion?
Thank you!
@Shareholder287:
https://innovativeincomeinvestor.com/bond-discussion/comment-page-10/#comment-150685
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Google search syntax:
“land o’ lakes” site:innovativeincomeinvestor.com
Land o lakes will provide financials if you email them w proof of ownership.
SPNT-B and Moody’s Has anyone ever questioned Moody’s why they apparently do not rate this preferred? They do rate SiriusPoint’s senior unsecured at Baa2 and they even provide an insurance financial strength (IFS) ratings rating for SiriusPoint of A3, but no rating for the preferred…. That seems unusual IMHO as when they rate senior unsecured, they usually rate the other cogs in the corporate structure as well, don’t they? I see no way to email the analyst and have not called to ask.
Does the company (SPNT) have to pay to have the security rated?
Interesting article on Yahoo about the metal nickel used a lot in the production of batteries. Seems with new technology batteries don’t need it as much so it’s at a 3 year low. Chinese investors and the Indonesian government had teamed up to increase production and with other suppliers like Australia it’s flooded the market for this metal. Now they are thinking of shutting down the smelter and cutting back on mining to try to get the price back up.
As with anything to do with commodities it’s supply and demand affecting the price
Charles-
Lithium stocks have also suffered due to changes in tech and anticipated demand.
TLT was rejected on March 4 at the leveled-out 200-day moving average. Now, it’s just above the rising 50 dma. Will the 50 be tested and will it hold?
last reminder: Mountain America CU (open to anyone by joining an association) is offering an 18 month certificate at a 4.89 dividend rate, 5% APY
They also offer a growth CD of 18 months at the same rate which is just an add-on certificate…you can thrown in up to 100k at any time in the next 18 mos.
This is a HUGE CU . 1 mill+ members. I opened both in person yesterday, but you can do it online
ends 4/30
I bought ET in a taxable account because others here have said their K-1 is no big deal, but I seem to have box 13K with $5 of excess business interest expense which requires filing form 8990 not supported by TurboTax. Any advice for this problem?
Irish…. I also own ET in a taxable account and have been using turbo tax for the last three years of owning ET stock. I received the same message this morning working on my taxes – however turbo tax message said I “MAY” need to file form 8990. Looking at my prior years ET K1 forms – 2023 did not have this excess business interest expense however 2022’s ET K1 form did. I did not file anything outside of what turbo tax submitted in 2022. I cannot remember if I received the same warning in regards to may needing to file a form 8990 in 2022 or not. Sorry not much help here.
So did TurboTax let you efile with that k1 box filled in? Thanks!
$5 ?
Think the IRS will pursue $5?
One option is delete the $5 manually and e-file. The $5 appears to be a capped deduction with a carry over of excess. Deductions reduce income. Deleting it increases income. As I understand it, taxpayers are not obligated to take deductions, only to report income. After you clean it up, you can run a TT file review before trying an e-file.
A longer and more nuanced answer is below. Which is – the $5 is likely within allowed limits anyway. I note a difference between your TT and Brett’s – Bretts TT notice says it MAY require an 8990 filing, You are saying a filing IS required. Time to do your homework.
Here are form 8990 and its instructions. You might want to look at the IRS Q&A, particularly Q #1 explaining the calculations for determining excess interest which is pegged to a 30% fraction of ATI. IMHO, large fractions of ATI’s tend to be numbers larger than 5.
Depending on your tax situation and the small $5 amount, it’s possible that 163j interest limits and excess carry over may not be material issues for you. Not a bad idea to run 8990 and take a look see.
8990 Form
https://www.irs.gov/pub/irs-pdf/f8990.pdf
Instructions for Form 8990
https://www.irs.gov/pub/irs-pdf/i8990.pdf
IRS Q&A
https://www.irs.gov/newsroom/basic-questions-and-answers-about-the-limitation-on-the-deduction-for-business-interest-expense
Your other options are filing a paper return, paying TT for tax advice and audit protection or hiring a CPA. Disclaimer: I don’t give tax advice. I avoid K-1’s for reasons like this. So proceed at your own risk. JMO and DYODD.
Brand new article on SA by N. Sismanis :
(Micro)Strategy’s STRF: The New 10% Yield Preferred Could Supercharge The BTC/Share Accretion Journey
Discusses STRF & K
Down on the farm, one bushel of wheat looks pretty much like every other bushel of wheat.
I found a list of preferred stock ETF recommendations made in June 2023. I did a 1-year look back to see how the ETFs performed over the last year. (This is an unfair comparison but 1 year is my usual time frame for shopping.) The results were close enough to conclude that recommendations don’t matter much, might as well pick by highest yield, lowest expense ratios, throwing darts, whatever.
For day traders, flippers and the $2 bettor — playing the long shot over the favorite gives a 67% chance of winning versus 0% chance for the favorite. Mid-pack gives a 40% chance of winning.
BofA’s Top-Rated Funds
Global X US Preferred ETF (NYSEARCA:PFFD) down 3.5%
iShares Preferred & Income Securities ETF (NASDAQ:PFF) down 2.8%
VanEck Preferred Securities ex-Financials ETF (NYSEARCA:PFXF) down 3.8%
BofA’s Neutral-Rated Funds
Invesco Preferred ETF (NYSEARCA:PGX) down 3.8%
SPDR ICE Preferred Securities ETF (PSK) down 5.5%
Invesco Financial Preferred ETF (PGF) down 3.7%
Principal Spectrum Preferred Securities Active ETF (PREF) Up 3.25%
Invesco Variable Rate Preferred ETF (VRP) Up 2.1%
BofA’s Bottom-Rated Funds
Global X SuperIncome Preferred ETF (SPFF) down 3.8%
First Trust Institutional Preferred Securities & Income ETF (FPEI) Up 3.0%
First Trust Preferred Securities and Income ETF (FPE) Up 2.5%
JMO. DYODD.
Bear thanks for the research. I have been winnowing some of my preferred maybe purchased as far back as 2023? The reason is they have been slowly sinking back to what I paid for them. So I have collected several dividends and am still positive on capital gains, of course the capital gains are not as good as say 3 months ago. I’m hoping they fall back closer to what I paid so I can pick up again. At least that is the plan.
good commment… interesting that PFFA was not noted at all …I posted this on another blog
PFFA has signficantly outperformed since march 2020…the data you are citing reflects significant undeperformance from inception in may 2018 to march 2020 lows ..in fact ALL of the underperformance occurred during the first 3 months of 2020
The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) has shown varied performance over the years:
2024: Annual return of 16.08%, outperforming its category average of 9.60%.
2023: A strong year with a return of 26.49%, compared to the category’s 9.70%.
2022: Faced challenges with a negative return of -20.88%, while the category averaged -14.82%.
2021: Rebounded with a return of 23.52%, surpassing the category’s 6.23%.
2020: A decline of -7.85%, against the category’s 4.83%.
2019: Exceptional performance with a return of 31.97%, far above the category’s 17.63%
I recently added to long as the pffa/pff leveraged pair is trading bottom of 1 yr uptrend
Only due to your opening line …. Wheat….
I am not involved with the commodity trdng area, and not sure how negative the tariff topic affects that area. Saw an interesting item a week or so back on the Wheat mkt …. and an ETF ( WEAT ) that only is focused on that commodity.
Recent 26 week look back on the ETF shows a 26wk avg prx of the ETF at $4.95 …. Today at $4.75.
Opened a position, and using it as vested tracker on grain mkt going forward in 2025.
Probably off topic to your posting ……