I am not really seeing super compelling buys out there right now–the type where you look for a decent current yield as well as potential for some capital gains, so instead, for now, I have entered some good until cancelled buy order for adding to some of my current positions.
I have positions in the Spire (SR-A) 5.9% perpetual preferred which is now trading at $24.01 as well as the NiSource 6.50% fixed rate reset perpetual preferred (NI-B) which is now trading at $24.31. My current position size is modest (less than full positions) and so would not mind adding to them if someone wants to sell them to me at MY price. My price is 75 cents or so below the current price levels–I mean I want them cheap (probably too cheap). Both of these companies are utilities and are split investment grade. My target current yield for most issues I am hoping to buy now is in the 6.5% to 7% range–which would be a super yield from quality issues–although I would be willing to go down in the 6% range for some quality CEF preferreds.
I had previously noted that I have a good til cancelled order in on the GAMCO (Gabelli) Natural Resources Gold and Income Trust (GNT-A), but my buy price is much lower–right now $2/share below the market so I don’t expect to get these but you never know. I currently have a position in this one. The coupon on this one is 5.2% so to get my target yield it needs to fall substantially.
I have a few more orders in and will post a note on them soon–just in a time crunch as always