The fixed-to-floating rate preferred from Spark Energy (NASDAQ:SPKEP) has slowly crept higher–day by day as we close in on the ex-dividend date of 6/28. The dividend for this period was declared a month or two ago and it looks like buyers want to lock in a tasty 55 cent dividend.
As readers know we are totally overweight this security and are now at (or very near) break even on our total return. Of course with the benefit of hindsight we wish we would have bought even more down around $22.
Spark announced lousy earnings last quarter and won’t announce 2nd quarter earnings until the 1st week of August. The company predicts a flat year to last year. This f-to-f issue traded over $27 prior to a reopening of the issue.