Preferred Shares Unloved

Robin Kingsmill - Jan 01, 2014
Sometimes it is better to take a small step back to appreciate a leap forward when it comes.

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(January 2014)
Sometimes it is better to take a small step back to appreciate a leap forward when it comes.

 

Are you still looking for income producing and smart investments? … amid all that common thought that Preferred Shares have lost their lustre?

We are told that their time in the sun has passed. Preferred Shares are unpopular. Preferred shares are unloved, right now. Hmmmm

Call me a contrarian. Call me many things but do call me to talk about the fact that there are still some very good deals out there, in spite of that ‘common thought’ suggesting that if and when interest rates do rise, many preferred shares will not be able to compete ...so they trade at low current values.

Call me because it is wise to look beyond the common thought. Key questions are:

  • Might that lower purchase price be put to work for your advantage?

  • Does that low selling price make the yield high enough to override the 'common thought?'

  • Does the preferred share’s cash flow trump the current value or its purchase price?

  • Will the additional tax benefits be of value?

  • Would a move today provide you greater cash flow which, accumulated over time, would pay you more, anyway?

I heard that! “Oh yes! The cash flow!” Did you forget to add that in? People so often do.

Sometimes it is better to take a small step back to appreciate a leap forward when it comes. This is still within the range of securities we would suggest you consider. Have we got your attention? You may wish to take a peek at a few scenarios on page 2.

This is what we are here for! We look for deals that will secure your required cash flow and play a smart role in your portfolio, not just sit there …because we take the time to know your specific investment strategies. And we dig deep to find good deals beyond that which common thought may miss.

Call us. There are deals to be had.

A couple of scenarios: Here’s some food for thought:

OK. We do know it is complicated. But if it were easy, anybody could do it! Call us. We will chat.

We are the Kingsmill Saar Wealth Management Group, undistracted in the pursuit of that extraordinary focus: Your Financial Goals.