Wesco International to Make 1st Juicy Dividend Payment

Wesco International (WCC) which merged with Anixter International earlier his year is about to make their 1st dividend payment on the juicy 10.625% fixed rate reset cumulative preferred on the 30th of the month.

The WCC-A issue went ex-dividend today for around 73 cents–the first payment is for slightly over 3 months.

The company is a giant in the business to business distribution and supply chain business with revenue now in the $17 billion area.

You can be certain there is plenty of risk in Wesco as they are rate B1 by Moodys and BB- by Standard and Poors. You can read S&P’s take on the combined companies.

I only mention this issue because depending on your risk tolerance this may be a reasonable holding. The reset period isn’t until 6/22/2025 so at 10.625% there is plenty of ‘meat on the bone’ yet even though shares closed at $28.30 today.

Disclosure–I hold a position in this issue which I bought in the $26.90 area.

29 thoughts on “Wesco International to Make 1st Juicy Dividend Payment”

  1. I bought 2000 shares averaged around 26.60 or so and will be very happy with my first payment. I put this in my medium risk category but will likely hold it for the duration.

    I thank this site for alerting me to this one.

    1. Thanks Bill W–I took a much more conservative position than you. Can’t remember who dug this one up but am happy that they did.

  2. Thanks to you, Tim and Gridbird, I have stuffed 558 shares or so in various IRA’s accounts. While it is not a SWAN, it sure beats all the Rida Morwa’s wealth destruction machine and actually many of the SA articles authored by so called PRO writers and awful FAST MONEY on CNBC. Seems that these folks know exactly which are the WORST possible bets. All my best, John

    1. John, Maverick pushed me over the top here with his excellent defense when debating with another person here. Have you noticed none of Rida Moron Dimwits have even mentioned this issue? They are too busy pumping WPG and PEI preferreds and others of their ilk at ever lower prices.

      1. Grid, I also thank you for your FPI-B. I went through Earnings Call transcript. The management does not seem terribly concerned with a losing quarter. Common share prices have turned positive probably in response to the equity market increase.
        It seems that BIPPF is still currently overpriced at least for today even with tiny volume. These market makers really get greedy these days. I sold some AUBAP in my IRA account and bought more UBP-H 6.25% New England groceries eREIT, on news that they collected well over 75+% rent and raised the divvies to the commons. SWANS seem quite expensive these days. I have a few shares of your CBKLP on Fideity hopefully getting filled. Schwab will not let me buy this one, claiming that their “backroom” person does not like their SEC filings (incomplete or something). It seems to me that this is a real SWAN. All my best, John

        1. John, It wont help the cause, but its a slow pitch softball smack slam on the Fidelity guy. Call them back and tell them how much you appreciate “the back room brains” protecting you from unsafe investments. After all CoBank is only one of the 50 safest rated banks in the world..And only 3 are in US…And the other 2 sure as hell aint tradable BAC, WFC, JPM, etc… 🙂

        2. I own CBKLP as well thru Fidelity but there is a case to be made for Schwab’s position on these as “The Series G Preferred Stock is being offered and sold only to, and may be purchased by and transferred only to, “qualified
          institutional buyers” (as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”)),
          institutional “accredited investors” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) or individual
          “accredited investors” as defined in Rule 501(a)(5) under the Securities Act.”…”We are not currently subject to, and intend to remain exempt from, the periodic reporting and
          other information requirements of the Securities Exchange Act of 1934, as amended (the “Exchange
          Act”)”

          1. 2WR, Yes that part is a given. In truth, Im not sure they really have had the regulations loosened, or they have simply becoming ignored in some circumstances. There really is supposed to be firmer procedures (right or wrong) for 144a securities. But “the dearth of SEC filings“ is not a legitimate reason and actually reinforces the general stupidity and lack of understanding of why this is so. I dread Schwab taking over my TD as they show repeated lack of cranial firepower in rather simple areas and this is another example.

            1. I have the same fear, Grid, of Schwab screwing up the good thing that is TDA… As far as 144a, yes, it does seem strange how it’s treated differently from one spot to another. Wasn’t there some push a few months back to tighten up with some brokers on CKBLP? I know I checked with IR and they confirmed they have done nothing to change their status and still have no expectations of doing so, but personally, I don’t have A problem if forced to own CBKLP forever, so it’s a non-event for me but on paper the language appears to be there for a broker to get in the way of an individual owning it…. And isn’t it ironic that Nanny Fidelity doesn’t seem to have a problem? And yes, I also know the irony of what I’m saying about owning CBKLP forever if need be vs. everything you know I’ve said that keeps me shying away from stuff without a maturity date or something that in practice gives a preferred one. … hah!

              1. 2WR, We are breaking you down…All in baby steps… First comes “dont mind holding“ perpetual CBKLP, and before you know it you will be loading up on CNLPL and AILLL…. And not getting a second of shut eye sleep at night worrying about a 15%-20% ass whippin’ call notice, ha.

                1. If 2WR does do what you say, Grid, and load up on CBKLP, AILLL & CNLPL then all I can add is….Welcome to the Sock Drawer club!! 🙂

                2. Ha! Yeah, maybe Grid but overall I’ll still be more willing to accept YTC yields that far exceed money market rates on likely to be called preferred candidates and hope the calls are delayed in hopes I can consider them shorter “maturities.” That just feels safer to me and allows me to take on some credit risk I might not be willing to take on normally and still do OK in the short run… no homeruns (or to be more up your sports terminology alley “hat tricks”), just singles. For example, I bot BRG-A on Friday last week at 25.35 and 25.41 on Tuesday in hopes of a call being announced by Monday… If it is, I’ll have bot below $25 at stripped prices and will do fine for a short term cash investment… If there is no call announced, I figure BRG-A will go up in price in reaction so I can grab the coupon and lower my exposure to a credit I’m not all that enamored with while still having put money to work short term that would have earned nothing elsewise… I suppose sort of a modified dividend capture play I guess…

                  1. BTW, Grid – Wasn’t it with one of the Eversource credits that you posted in response to someone, “Finally, someone else is figuring out how to dig?” What I wanted to say about that was that finding the source material was not the most important part of the puzzle – it’s what you did that is… You had the wherewithall to think to go to the regulatory agencies to search around for more possibly valuable info and you hit the jackpot by doing so… That’s where the talent for researching part comes into play….

                    1. 2WR, My research skills arent too deep, but fortunately a good search question will usually pull up the relevant data needed. Because I have had to actually go into the regulatory websites and databases and its a nightmare trying to extract specific info if google wasnt able to do so.
                      Some of the stuff one can read in reg filings is actually interesting to me.
                      The thing most people need to remember these old ute preferreds is regulators could care less what series, ticker, yield, or term they are. Just the ave yield in total. That is what I first figured out with Ameren issues 6-7 years ago. The filings were showing preferred stock cost of well under 5% and were specifically cited as “one series”. So that led me to believe no calls were coming and to chase the above par, past call, higher yield issues.

              2. Sorry I am not understanding the issue with CBKLP, is it that if I want to sell it Fidelity wont allow me to? They had no problem when I bought it (though I dont intend selling it)

                BTW – Vanguard didn’t allow me to buy.

          2. I have had several long talks with Schwab’s “back office” about CBKLP.

            If you fill out the accredited investor paperwork, you can buy it.
            However, you can NEVER sell it unless YOU go find another accredited investor (in one of the categories you mentioned) to sell it to, then you can have schwab conduct the transaction for you. For practical purposes, that means you can buy but never sell.

            1. If anyone needs an accredited investor to buy their CBKLP I am here at $90 a share and accreditation in hand.

              1. Bob, that is what bank SBNC says about their preferreds if you inquire….“Find somebody who owns them and see if they will sell to you”.

                1. May as well put a notice up on the bulletin board at the grocery store.

                  Somewhere, there is actually a registry of owners.

                  I’m guessing that 17.95 ask on SBNCM is yours!

                  1. Bob, its not, but if interested in buying let me know. I have a 1000 I can undercut price at $17.25 if you want, lol.

                    1. I know you guys are kidding but at $17.95, it’s a 5% yield on a noncallable issue and Powell is on TV talking about how interest rates won’t be rising anytime soon. Also, new issues are going for 4.125%. Would you really sell at $17.25 (5.2% yield)?

                    2. To Dick – at 17.95 I might be a seller, with the expectation (hope) of buying it back at 15.50-16.50.

                    3. Dick, I actually would sell some at that price. You can get essentially non callable WFC-L with a 5.4% yield. This is a smaller regional bank this is tightly held. I get the yearly financials mailed to me, but who really knows what is going on with any bank. The best thing about SBCN bank is I know the insiders own a big chunk of two of their preferreds, so the incentive to pay is there.

          3. Yes. They did read all these rules. Fidelity backroom person was even worse, trying to scare its Founder and largest shareholder, Ned Johnson. Recently, my Dallas online friend, researched the recent quarter on the Electric Reseller (Grid and Tim called it Fake Electric) SParke Energy, I tried to get a few shares to recover my past loss. It was restricted. These days, they are more “reasonable”, they will place the order. However, I need to call them to change price.

        3. Gridbird, I misclicked in editing. I am prepared to bid $25.25 for BIPPF as I did for BEP-A. Thanks to Tim, Brookfield renewable common, BEP and now BEPC (the old TerraFarm they acquired) plus AY (non Brookfield) Wind and Sun, mainly in Europe have all outperformed vs. fossil energy, EPD and MMP and the God awful ET (all ET preferred the common just like Rida’s Mall). I have some legacy positions on EPD, MMP (legacy plus stupid more recent effort to “average the cost down”. I have also bought the preferred units of the old TOO pipeline (acquired by Brookfield). That preferred units and Brookfield Property Inc. (same as Brookfield Property partnership) are the only ones under water, way under for a while. Nonetheless, it produces lots of cash flow. EVA is the best of Rida (he sold it looking for HIGHER yield elsewhere always). A little overpriced perhaps. Great K1 paying substantially lower tax as compared to all OTHER K1’s. BTW, I need to thank to the guy who mentioned about UBP and the old Saul Center SBS preferreds in Tim’s great WEBSITE. I went with UBP-H, higher coupon yield.

          1. Sometimes, what seems expensive may NOT. A case in point: BEP-A is trading comfortably in mid $26 with YTC of just 3.75%. I bet Tim McPartland could have bought already on Day 1. A 200 share bet at $25.40 may not be insane. Apparently Brookfield renewable partnership or its daughter supercedes all the ratings by Moody/SP/Fitch. I foolishly sold some BEP-A first to make sure that I would not suffer cap loss and later thought that it would be time to cash in the profit. LOL. I must be too old to trade. I first called Fidelity to transfer money and then realized that they charge the awful $50 transaction fee because of Bermuda. Now I placed an overnight at Schwab and transfer some money. Tomorrow, I will be going for an awful un-needed oral surgery as a result of some Orange County California dishonest dentist, who trashed all my teeth in upper jaw and did an incomplete removal (unnecessary in hindsight) of a partially failed implant. LOL.

            1. I’m rooting for you, johnkcal. Next month I get a wisdom tooth pulled, after most of the crown fell off a couple weeks ago.

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