I Prefer Income Blog: 2-27-2019

The “I Prefer Income” Spreadsheet is a research tool that provides focused information on all preferred stocks and ETD (Exchange Traded Debt) securities with a par value of $25 (convertibles not included). The Spreadsheet contains basic information and financial metrics on both the preferred stocks & ETD securities, as well as the company that issued (or is currently responsible) for the security. This information will help provide the investor with the means to rate each security for safety, price, yield and timeliness so that risk/reward can be identified before making a buy/sell decision.
The Preferred Stock & ETD Securities Spreadsheet contains over 600 securities along with the parent company that is responsible for the security. This is not a simple list of securities. It provides a large amount of financial metrics, including both GAAP and Non-GAAP earnings. Some of the metrics include: 5 years & quarters of earnings, common stock & preferred stock dividend payout ratios, cash flow ratios, interest coverage ratios, debt ratios, price to book ratios and more.

With so much information, a filter has been added to allow the user to select up to 15 criteria to narrow the list. Example: I am using the filter to add these 3 criteria:

• Price < (Less than) 25.30
• Yield > (Greater than) 5.9%
• 15% Tax = Yes

Once submitted, there were 66 issues that met these 3 criteria of a price of less than $25.30, a yield greater than 5.9% and 15% Tax (Qualified Tax) = Yes. Once the list of securities is shown, you can go over each issue to see if any of the issues meet your investment requirements. This filter was meant to find the dividends that meet the requirements for being a qualified dividend. The Motley Fool said the following about qualified dividends: “Dividends are the payments companies make to their shareholders. If you receive a dividend, you’ll have to pay taxes on it — but how much you pay will depend on whether or not the dividend is a qualified one. Choosing stocks that pay qualified dividends can significantly reduce your tax bills — and the bigger your dividends are, the more you’ll save. The big benefit of qualified dividends is that they are taxed at the same rate as the long-term capital gains rate, whereas nonqualified dividends are taxed at the higher ordinary income tax rate. The rates for long-term capital gains and qualified dividends is based on your tax bracket. If your income puts you in a bracket that’s higher than 15% but lower than 39.6%, then your tax rate is 15%. If you’re in the 39.6% bracket, then your rate for qualified dividends is 20%; and if your top tax bracket is 15% or below, you enjoy a 0% rate, which means you won’t pay taxes on qualified dividends at all”.

 

“I Prefer Income” Website

Preferred stocks and ETD securities are different from common stocks. Most investors buy for the income they generate and because they are safer than the common stock dividend paid by the parent. In general, ETD securities are safer than preferreds and preferreds are safer than common stock. To learn more, go to our website at: www.ipreferincome.com and click on Basics to learn more about both securities. There is a lot to learn. Then click on Info to learn more about the IPI! spreadsheet. This page includes 4 Youtube videos for step by step info on the program. The Spreadsheet provides a variety of Financial Metrics to help determine the strength and safety of the parent and each issue. To learn more about what each metrics means, click Info and then Metrics.
Investing for Income

Like many investors, I have gone through a long period of investment experimentation. As a teenager, I had a friend whose dad was a broker for a local stock market investment brokerage. One day, I happened to visit the father at his office and after being dazzled by his discussion of the stock market, I decided to make a small investment in a stock he was recommending to his clients. That stock turned out to be a winner and it was something I would never forget. Over time, I have gone through various stages of trial and error investing that re-enforced the strategy that I now am most comfortable with.
As my name indicates: “I Prefer Income”. Appreciation is nice, but I would rather receive the majority of my income from dividends and interest. There are several reasons for the preference to income:

1. I have had terrible results trying to pick stocks that will appreciate on a steady, reliable basis.
2. Stocks and the market do not always go up. Appreciation is not a sure thing.
3. There are many income securities that are available with great yields.
4. There are many income securities that are safe and reliable.
5. These securities provide earning statements and SEC documents that I am able to analyze and understand.
6. I need income to pay my bills and enjoy life.
7. I can re-invest the income generated to increase future income.

Ok, there are many types of income, but I have zeroed in on securities with higher yields above 6%. If I was younger, I might aim for dividend growth companies whose dividends grow a little bit every year or so, but I found that those stocks generally pay out dividends with lower yields of 2 to 5%. If you picked the right company that is growing their business and their dividend, those companies will appreciate as their dividends increase. It is a good deal if you are young and patient. But if you are in or near retirement, you generally need the income sooner rather than later.

Investment Choices

As an income investor, I have a wide range of choices where I could find and invest in securities that provide yields above 6%. Some of the choices available are: Master Limited Partnerships or midstream related companies, REITS, commercial REITS, mortgage REITS, business development companies, closed end funds and more. I found that I could make a few investments in each of the types of securities; but over time, I found that Preferred stocks and ETD securities provided the largest number of reasonably safe and reliable securities with yields above 6% that I could invest in. They are also safer than their parent common stock dividends and the yields are generally higher than what can be obtained in the marketplace. The dividends are also fixed. That means they will not go up, but the good news is that they cannot go down. That cannot be said of common stock dividends. I also found that I could find quite a few issues with yields above 7 or even 8% – especially when the markets have short term corrections.

Introducing the “Meat & Potatoes” Portfolio

I love to read investment articles. Seeking Alpha has many authors who provide a wealth of information and generate a lot of good ideas and recommendations. However, if you are waiting for the next article to determine out what security to invest in, you miss out on the hundreds of other choices available to you. In reality, there are many good companies that have issued preferred stocks and ETD securities that provide reasonably safe and reliable dividends that are priced at or near par and have yields above 6%. I don’t consider these to be high risk or have unsustainable high yields. They are low to medium risk companies that provide a fair yield that I either own or am interested in buying. There are currently 15 issues in the portfolio. There are many more that could be added, but I wanted to keep it fairly small and manageable.

There are currently over 600 preferred stocks & ETD securities with a par value of $25. These include traditional cumulative preferred, traditional non-cumulative preferred, trust preferred and ETD (exchange traded debts). The Meat & Potato portfolio generally includes reasonably safe preferred stocks & ETD with yields between 6 and 7.5% and prices around par or below. This list will change as conditions, prices and yields change. But these securities represent good values and good yields with fair risk levels. I consider these issues to be good for those who prefer to buy and hold for the medium to long term. That doesn’t mean they can stop reviewing these companies throughout the year because murphy’s law is always in place. However, If the market corrected, I would hold them during the drop in prices and even look to buy more if prices dropped enough.

Basic information about the table and all fields can be obtained at the “I Prefer Income” website, but here is a quick review. Header row at top. All rows in gray are the parent row. The row directly under the parent is the preferred or ETD issue that is included in the portfolio. There are 15 Meat and Potato securities in the list. They are listed alphabetically.

Specific Information

Here is some information about each of the issues:

BFS-D: Parent is BFS. REIT involved in community shopping centers and office complexes. Current yield of 6.5 and Year-to-Call of 8.1. Company is a Dividend Diamond that has increased dividend 6 years in a row. Last 5 years and quarters have been profitable and 4th quarter FFO was higher than 2017. Stock dividend payout is .69 and preferred dividend payout is .12.

CHMI-D: Parent is CHMI. Mortgage REIT. Current yield of 8.3%. Company has been profitable last 5 years and 5 quarters. Parent has paid same dividend since 2015. Stock dividend payout is .29 and preferred stock dividend is .05.

CIM-D: Parent is CIM. Mortgage REIT. Current yield is 8%. Company has been profitable last 5 years and 5 quarters. Parent dividend has been relatively steady since 2015 with the last action being an increase in dividend in early 2017. Stock dividend payout is .64 and preferred stock dividend payout is .06

EPR-G: Parent is EPR. REIT engages in the development, finance, and leasing of theatres, entertainment retail and family entertainment centers. Current yield is 6.2 with yield-to-call of 8.4%. EPR is a dividend diamond that has increased their dividend every year for the last 9 years. Company has been profitable last 5 years and 5 quarters. Stock dividend payout is .75 and preferred stock dividend payout ratio is .05.
ETP-C: Parent is ET. Midstream company provides natural gas pipeline transportation and transmission services. Current yield is 7.6% and yield-to-call of 8.5%. Company has been profitable last 5 years and 5 quarters. Distributable cash flow payout is .47 and preferred stock dividend payout ratio is .008. Company dividend has history of increases with the last increase in 2018.

HCXY: Parent is HTGC. Business development company is a specialty finance company, which focuses on providing senior secured loans to high-growth, innovative venture capital-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. This issue is an ETD and current yield is 6.4% and yield-to-call of 6.8%. HTGC has been profitable last 5 years and 5 quarters.

INN-E: Parent is INN. REIT that focuses on acquiring and owning premium-branded, select-service hotels in the upscale and upper-midscale segments of the U.S. lodging industry. Has been profitable last 4 of 5 years and last 5 quarters based on GAAP earnings. Current yield is 7.1 and yield-to-call of 10.7%. Company is a dividend diamond that has increased their dividend every year for the last 5 years. Stock dividend payout ratio is .53 and preferred stock dividend payout is .11.

JCAP-B: Parent is JCAP. Mortgage REIT that engages in the provision of debt and equity capital. Its investments include mortgage loans typically coupled with equity interests as well as outright ownership of self-storage facilities. Current yield is 7.1% and yield-to-call of 7.5%. This is a fairly new public company and has been profitable 2 out of the last 3 years and 5 out of the last 5 quarters. Stock dividend payout ratio is .71 and preferred stock dividend payout ratio is .29. Just reported 4th quarter earnings and last 4 quarterly non-GAAP adjusted EPS have increased every quarter.

LMRKO: Parent is LMRK. Company engages in the acquisition, ownership, and management of portfolio of real property interests. These include wireless communication cell towers, outdoor advertising, and renewable power generation. Current yield is 8.1 and yield-to-call is 9.3%. This is a fairly new public company and has been profitable 3 out of the last 4 years. It has also been profitable 5 out of the last 5 quarters. Its distributable cash flow payout ratio is 1.25 and the preferred stock dividend payout ratio is .25. Has positive recommendations from Seeking Alpha authors Rida Morwa and Brad Thomas.

MNR-C: Parent is MNR. Company engages in the ownership and management of single tenant, industrial buildings leased primarily to investment-grade tenants on long-term net leases. Current yield of 6.4% and yield-to-call of 7.7%. Company has been profitable 5 out of the last 5 years. It has also been profitable 5 out of 5 last quarters. Stock dividend payout ratio is .77 and preferred stock dividend payout ratio is .20.

NLY-G: Parent is NLY. Mortgage REIT that engages in the investment and financing of residential and commercial assets. Current yield is 6.7% and yield-to-call is 7.4%. Company has been profitable 4 out of the last 5 years and 5 out of 5 of the last 5 quarters. Considered to be the largest MREIT. Dividend has remained the same since 2013. Stock dividend payout ratio is .47 and preferred stock dividend payout ratio is .04.

OAK-A: Parent is OAK. Oaktree Capital Group LLC is an investment management company. It focuses on the investments in distressed debt, corporate debt, controls investing, convertible securities, real estate, and listed equities. Current yield is 6.6%. Rated BBB by S&P. Has been profitable 5 out of the last 5 years and 5 out of the last 5 quarters. Stock dividend payout ratio of .81 and preferred stock dividend payout ratio of .02.

QTS-A: Parent is QTS. QTS Realty Trust, Inc. engages in the provision of data center and portfolio of IT solutions. Current yield is 7%. Has been profitable 5 out of the last 5 years and 1 out of 4 of the last 5 years on a GAAP basis. However, on a Non-GAAP basis, it has been profitable 5 out of the last 5 quarters. Company is a dividend diamond and has increased their dividend every year for the last 5 quarters. Stock dividend payout is .55 and preferred stock dividend payout ratio is .08.

SAF: Parent is SAR. Company is a business development company and is a specialty finance company, which engages in the provision of financing solutions. This issue is an Exchange Traded Debt (ETD). Current yield is 6.3%. Company has been profitable 5 out of the last 5 years and 5 out of the last 5 quarters. Company has raised their dividend consistently since 2014 which it paid a dividend of .18. That dividend has increased virtually every quarter and they just announced the new dividend of .54.

SRC-A: Parent is SRC. Retail REIT. Current yield is 6.4 and yield-to-call of 8.1%. Company has been profitable 3 out of the last 5 years and 5 out of the last 5 quarters. They recently split off part of their company that was not performing well. Stock dividend payout ratio is over 1% but will improve once old results are past. Preferred stock dividend payout is .029.

Ok, this is my current Meat & Potatoes Portfolio. It will change as prices, yields and conditions change. I will keep this updated.

Dividend Updates

I track changes in common stock dividends from companies that have preferred stocks and ETD securities. There are several companies listed on the I Prefer Income Spreadsheet that made announcements of changes in their dividends over the last week. Increases are great as it probably means the company is doing well and has confidence in the future. Decreases may be cause for concern as it may mean that the company is not doing as well as they would like and are adjusting the dividend to a more realistic level. That doesn’t mean that the drop is a threat to their preferred or ETD securities, but investors should take this opportunity to check out the financial status of the company. There are times when this could provide an opportunity to buy – especially if prices drop on the news to an oversold position.

COMMON STOCK DIVIDEND INCREASES

• GRX: Raised dividend from .13 to .14
• SAR: Raised dividend from .53 to .54
• AGO: Raised dividend from .16 to .18

How to obtain the Preferred Stock & ETD Securities Spreadsheet

There is no charge for the “I Prefer Income” Spreadsheet. If you have received this article by email, I have attached the current spreadsheet. You can also go to www.ipreferincome.com and subscribe for a Free Membership. Once a member, go to the Spreadsheet page where you can download the file. I update the file every day after the market closes. In addition to the Spreadsheet, the website contains a great deal of information on preferred stocks and ETD securities. Please forward this email to friends or family members who are interested in income investing. They may find it helpful.
Disclosure: Please keep in mind that I am not a licensed securities dealer or advisor. The views here are solely my own and should not be considered as a recommendation. Individuals should determine the suitability for their own situation and perform their own due diligence before making any investment.

I hope you enjoy the newsletter, website and spreadsheet.

I Prefer Income Blog: 2/22/19

This newsletter is provided to those people who have an interest in income investing and in preferred stocks and ETD securities. Remember that the spreadsheet is updated every day after the market closes. It is available for download to all members. Memberships are FREE and are available at: www.ipreferincome.com . If you are just learning about Preferred stocks and ETD Securities, the website contains a wealth of information that will help you understand these securities and the financial metrics found on the spreadsheet.

About the “I Prefer Income” Spreadsheet

The “I Prefer Income” Spreadsheet is a research tool that provides focused information on all preferred stocks and ETD (Exchange Traded Debt) securities with a par value of $25 (convertibles not included). The Spreadsheet contains basic information and financial metrics on both the preferred stocks & ETD securities, as well as the company that issued (or is currently responsible) for the security. This information will help provide the investor with the means to rate each security for safety, price, yield and timeliness so that risk/reward can be identified before making a buy/sell decision.

The Preferred Stock & ETD Securities Spreadsheet contains over 600 securities along with the parent company that is responsible for the security. This is not a simple list of securities. It provides a large amount of financial metrics, including both GAAP and Non-GAAP earnings. Some of the metrics include: 5 years & quarters of earnings, common stock & preferred stock dividend payout ratios, cash flow ratios, interest coverage ratios, debt ratios, price to book ratios and more.

With so much information, a filter has been added to allow the user to select up to 15 criteria to narrow the list. Example: I am using the filter to add these 4 criteria:

• Price  < (Less than)  25.30
• Yield  > (Greater than)  6%
• Industry  REIT-LODGING
• Stock Payout  < (Less than)  .90

Once submitted, there were 36 issues that met these 4 criteria. Take a look at the filter below to see those 4 criteria. This set of criteria found issues with a price of less than $25, a yield greater than 6%, yield-to-call greater than 7% and were profitable 5 of the last 5 quarters. Once the list of securities is shown, you can go over each issue to see if it meets your investment requirements.

“I Prefer Income” Website

Preferred stocks and ETD securities are different from common stocks. Most investors buy for the income they generate and because they are safer than the common stock dividend paid by the parent. In general, ETD securities are safer than preferreds and preferreds are safer than common stock. To learn more, go to our website at; www.ipreferincome.com and click on Basics to learn more about both securities. There is a lot to learn. Then click on Info to learn more about the IPI! spreadsheet. This page includes 4 Youtube videos for step by step info on the program. The Spreadsheet provides a variety of Financial Metrics to help determine the strength and safety of the parent and each issue. To learn more about what each metrics means, click Info and then Metrics.

Update Preferred Stocks & ETD Securities

As of 2/22/2019, the “I Prefer Income” Spreadsheet contains the following:

• Traditional Preferred cumulative stocks: 281
• Traditional Preferred non-cumulative stocks: 145
• Trust Preferred: 18
• ETD securities: 169
• Issues with price under $25: 277
• Issues with yield greater than 7%: 212

Most income investors look for dividends that are sustainable, reliable, and safe. Here are some metrics that help identify these characteristics.

• 5 Profitable Years: There are 318 issues where the parent has been profitable 5 out of the last 5 years.
• 5 Profitable Quarters: There are 293 issues where the parent has been profitable 5 out of the last 5 quarters.
• Dividend Diamonds: There are 198 issues where the parent has raised their dividends 5 or more consecutive years in a row.
• Common Stock Payout Ratio: There are 342 preferred issues where the parent common stock dividend payout ratio is less than .75 (75%)
• Preferred Stock Payout Ratio: There are 390 preferred issues where the parent preferred stock dividend payout ratio is less than .25 (25%)
• Operating Cash Flow Payout Ratio: There are 294 preferred issues where the parent operating cash flow payout ratio is less than .10 (10%)

Dividend Updates

The “I Prefer Income” Spreadsheet tracks all companies that have increased their common stock dividends every year for 5 or more years. We have named these companies as “Dividend Diamonds” and we list the number of years these companies have increased their common stock dividends. A Dividend Diamond is a positive metric that identifies a company as being strong enough to raise their dividend on a regular basis. There are currently 193 issues where the parent is designated as a Dividend Diamond.

We also track changes in common stock dividends. There are several companies listed on the I Prefer Income Spreadsheet that made announcements of changes in their dividends over the last week. Increases are great as it shows the company is doing well and has confidence in the future. Decreases may be cause for concern as it shows that the company is not doing as well as they would like and are adjusting the dividend to a more realistic level. That doesn’t mean that the drop is a threat to their preferred or ETD securities, but investors should take this opportunity to check out the financial status of the company. There are times when this could provide an opportunity to buy – especially if prices drop on the news to an oversold position.

COMMON STOCK DIVIDEND INCREASES

• NEE: Raised dividend from 1.11 to 1.25
• APO: Raised dividend from .46 to .56
• AGM: Raised dividend from .58 to .70
• ARGO: Raised dividend from .27 to .31
• QTS: Raised dividend from .41 to .44
• TDS: Raised dividend from .16 to .165
• DLR: Raised dividend from 1.01 to 1.08

COMMON STOCK DIVIDEND DROP

• HCAP: Lowered dividend from .095 to .08

NOTEWORTHY ARTICLES

Seeking Alpha has a lot of great authors that write very informative articles on all investment subjects. I especially appreciate and read the articles on income investing. Personally, I focus on higher yielding investments that have limited appreciation potential. There are exceptions, but normally, the higher the yield, the less likely there is for appreciation unless you buy when the stock is depressed, such as during the market drop in November & December. Suddenly, the opportunity for high yield and appreciation was available.

One of the authors I follow and appreciate is Brad Thomas. He is an expert on REITS and writes many articles on these stocks. This week he wrote an article entitled “5 REITS To Avoid When The Next Recession Hits”. The article provides an overview of what types of REITS that could be hurt during the next recession. If you have not already read it, you might take a minute to check it out. SA only makes these articles available for 10 days, so better hurry.

CURRENT THOUGHTS ON PREFERRED STOCKS & ETD SECURITIES

It has only been 6 weeks since the start of 2019, but the market and preferred stocks & ETD securities have done a U turn – especially since Fed Chairman Powell gave his speech on upcoming interest rates on 1/4/2019. Here is the chart on PFF, which is an ETF that tracks preferred stocks and baby bonds (ETD). The turn-around is dramatic, but from the chart, there is still some room for these securities to rise further if we are to fully return to previous prices.

One of the other important factors that investors should pay attention to is the 10 year treasury rates. When rates are increasing, there is pressure on interest sensitive securities to drop in price. But the reverse happens when rates fall. From reviewing the chart below, the change has been dramatic over the last few weeks.

Many analysts have warned their readers to stay away or limit ownership in preferreds and ETD securities because of increasing interest rate fears; however, they were assuming that once interest rates started to rise, they would increase to ultra high levels. But many of these analysts did not think to mention that rates fluctuate and if rates do increase, they will eventually fall back to lower levels once those high rates have hurt the economy enough to cause economic concerns. It might be similar to oil prices. High oil prices cause low demand and low demand causes production to fall, which is followed by lower prices.

Every economic period is somewhat different than the past, but I am in the camp of investors who look at falling prices as a potential opportunity to buy good securities at bargain (or at least better) prices with higher yields.

Relationship Between Preferred and Common Stock

The IPI! spreadsheet displays the parent company for every preferred stock and ETD security. There are many reasons; but without the parent, there is no way to determine the overall financial health of the company that issued the security. Having so much information on the parent provides a wealth of information. But there are some things an investor could do besides just having access to financial data. Here are a couple of ideas:

1. Parent stock chart: Take a look at the parent stock chart. If the parent chart looks strong, it probably means overall financial well-being and a bright future. However, if the stock chart is weak and getting weaker, then it is time to take a hard look at whether or not an investment in the preferreds or ETD securities is warranted. The chart is just one of many things that investors should look at, but it may be one that is overlooked.

2. Check out the difference in yields. If the parent pays a dividend, there is a very good chance that the yield it offers will be completely different than the yield that their preferred stock(s) or ETD securities offers. In theory, the lower the risk, the lower the yield will be on dividends paid. And conversely, the higher the risk, the higher the yield will be. The investor should review the yields of the common and compare to the yields of the preferreds and ETD. A low common stock yield could mean low risk and a better chance for appreciation and increasing dividends. A high yield could mean high risk and low chance for appreciation and cuts in dividends. Once you know what the common stock dividend yield is, compare it to the preferred & ETD yields. In general, a low yielding common stock dividend will probably mean the preferred and ETD will provide a yield in the lower range for that industry group. However, if the common stock dividend yield is high, then there is a good chance the preferreds and ETD will also be high. Examples are the MREITS. Most MREIT common stock yields are high and the preferreds are also high.

How to obtain the Preferred Stock & ETD Securities Spreadsheet

There is no charge for the “I Prefer Income” Spreadsheet. If you have received this article by email, I have attached the current spreadsheet. You can also go to www.ipreferincome.com and subscribe for a Free Membership. Once a member, go to the Spreadsheet page where you can download the file. I update the file every day after the market closes. In addition to the Spreadsheet, the website contains a great deal of information on preferred stocks and ETD securities. Please forward this email to friends or family members who are interested in income investing. They may find it helpful.

I hope you enjoy the newsletter, website and spreadsheet.

Thanks.
Rich Hill
I Prefer Income

I Prefer Income Blog: 2-15-19

This newsletter is provided to those people who have an interest in income investing and in preferred stocks and ETD securities. Remember that the spreadsheet is updated every day after the market closes. It is available for download to all members. Memberships are FREE and are available at: www.ipreferincome.com . If you are just learning about Preferred stocks and ETD Securities, the website contains a wealth of information that will help you understand these securities and all of the financial metrics found on the spreadsheet.

About the “I Prefer Income” Spreadsheet

The “I Prefer Income” Spreadsheet is a research tool that provides focused information on all preferred stocks and ETD (Exchange Traded Debt) securities with a par value of $25 (convertibles not included). The Spreadsheet contains basic information and financial metrics on both the preferred stocks & ETD securities, as well as the company that issued (or is currently responsible) for the security. This information will help provide the investor with the means to rate each security for safety, price, yield and timeliness so that risk/reward can be identified before making a buy/sell decision.

The Preferred Stock & ETD Securities Spreadsheet contains over 610 securities along with the parent company that is responsible for the security. This is not a simple list of securities. It provides a large amount of financial metrics, including both GAAP and Non-GAAP earnings. Some of the metrics include: 5 years & quarters of earnings, common stock & preferred stock dividend payout ratios, cash flow ratios, interest coverage ratios, debt ratios, price to book ratios and more.
With so much information, a filter has been added to allow the user to select up to 15 criteria to narrow the list. Example: I am using the filter to add 4 criteria:

• Price: < (Less than) 25.00
• Yield: > (Greater than) 6%
• Yield-to-call: > (Greater than) 7%
• Quarters profitable: > (Greater than) 4

Once submitted, there were 36 issues that met these 4 criteria. Take a look at the filter below to see those 4 criteria. This set of criteria found issues with a price of less than $25, a yield greater than 6%, yield-to-call greater than 7% and were profitable 5 of the last 5 quarters. Once the list of securities is shown, you can go over each issue to see if it meets your investment requirements.

“I Prefer Income” Website

Preferred stocks and ETD securities are different from common stocks. Most investors buy for the income they generate and because they are safer than the common stock dividend paid by the parent. In general, ETD securities are safer than preferreds and preferreds are safer than common stock. To learn more, go to our website at; www.ipreferincome.com and click on Basics to learn more about both securities. There is a lot to learn. Then click on Info to learn more about the IPI! spreadsheet. This page includes 4 Youtube videos for step by step info on the program. The Spreadsheet provides a variety of Financial Metrics to help determine the strength and safety of the parent and each issue. To learn more about what each metrics means, click Info and then Metrics.

Update Preferred Stocks & ETD Securities

As of 2/15/2019, the “I Prefer Income” Spreadsheet contains the following:

• Traditional Preferred cumulative stocks: 283
• Traditional Preferred non-cumulative stocks: 145
• Trust Preferred: 18
• ETD securities: 169
• Issues with price under $25: 295
• Issues with yield greater than 7%: 226

Most income investors look for dividends that are sustainable, reliable, and safe. Here are some metrics that help identify these characteristics.

• 5 Profitable Years: There are 316 issues where the parent has been profitable 5 out of the last 5 years.
• 5 Profitable Quarters: There are 293 issues where the parent has been profitable 5 out of the last 5 quarters.
• Dividend Diamonds: There are 193 issues where the parent has raised their dividends 5 or more consecutive years in a row
• Common Stock Payout Ratio: There are 411 preferred issues where the parent common stock dividend payout ratio is less than .90 (90%)
• Preferred Stock Payout Ratio: There are 413 preferred issues where the parent preferred stock dividend payout ratio is less than .50 (50%)
• Operating Cash Flow Payout Ratio: There are 290 preferred issues where the parent operating cash flow payout ratio is less than .10 (10%)

Dividend Updates

The “I Prefer Income” Spreadsheet tracks all companies that have increased their common stock dividends every year for 5 or more years. We have named these companies as “Dividend Diamonds” and we list the number of years these companies have increased their common stock dividends. A Dividend Diamond is a positive metric that identifies a company as being strong enough to raise their dividend on a regular basis. There are currently 193 issues where the parent is designated as a Dividend Diamond.
We also track changes in common stock dividends. There are several companies listed on the I Prefer Income Spreadsheet that made announcements of changes in their dividends over the last week. Increases are great. Decreases may be cause for concern.

COMMON STOCK DIVIDEND INCREASES

• BPOP: Raised dividend from .25 to .30
• SF: Raised dividend from .12 to .15
• ARES: Raised dividend from .28 to 32
• PPL: Raised dividend from .41 to .4125
• REXR: Raised dividend from .16 to .185
• ARCC: Raised dividend from .39 to .40

COMMON STOCK DIVIDEND DROP

• CTL: Lowered dividend from .54 to .25
• NEWT: Lowered dividend from .50 to .40
• MCC: Lowered dividend from .10 to .05

NOTEWORTHY ARTICLES

Seeking Alpha has a lot of great authors that write very informative articles on all investment subjects. I especially appreciate and read the articles on income investing. Personally, I focus on higher yielding investments that “normally” do not have a lot of appreciation potential. There are exceptions, but normally, the higher the yield, the less likely there is for appreciation unless you buy when the stock is depressed, such as during the market drop in December. Suddenly, the opportunity for high yield and appreciation was available.
One of the authors I appreciate is Rida Morwa. He writes about high yield opportunities. This week he wrote an article entitled “What is Dividend Yield”. If you have not already read it, you might take a minute to check it out. SA only makes these articles available for 10 days, so better hurry.

SPREADSHEET MACROS

There are 4 macros on the spreadsheet that are tools to help the investor.

User Guide: Click on the User Guide and the macro will point out various areas of interest.


Filter Securities
: Click on the Filter Securities button to display the filter pop-up with 15 criteria you can use to narrow your search.


Profit & Loss Table
: Use mouse to click on the yellow cell B or C to display the last 5 years and 5 quarters of GAAP or Non-GAAP earnings.


Dividend History
: Click on the Yellow AD cell to open the last 5 quarters of dividend payments.


Preferred Stock Dividend Payout Ratio

Column G displays TTM (Trailing 12 months) Preferred Stock Dividend Payout. Simply put, it is the ratio of the preferred stock dividend compared to the earnings that are available to pay the dividend. It is clear that you want the dividend to be less than the earnings so you are looking for payout of much less than 1 (meaning 100%). This is one of the more important ratios. The lower the ratio the more sustainable the preferred stock dividend is. A healthy company is easily able to pay for their preferred stock dividend. I personally like to see the payout ratio less than .10 (10%).

How to obtain the Preferred Stock & ETD Securities Spreadsheet

There is no charge for the “I Prefer Income” Spreadsheet. If you have received this article by email, I have attached the current spreadsheet. You can also go to www.ipreferincome.com and subscribe for a Free Membership. Once a member, go to the Spreadsheet page where you can download the file. I update the file every day after the market closes. In addition to the Spreadsheet, the website contains a great deal of information on preferred stocks and ETD securities. Please forward this email to friends or family members who are interested in income investing. They may find it helpful.

Thanks. Rich Hill
I Prefer Income

IPI Spreadsheet Info – 2-8-19

This is a follow-up letter to those people who asked for the Preferred Stock & ETD Securities Spreadsheet from I Prefer Income. I hope that you have been able to open and use the Spreadsheet. I update it daily and make it available to I Prefer Income members. This is a free membership located at: www.ipreferincome.com . Besides the spreadsheet, there is much more information on the website. Hope you visit and take advantage of the resources.

About the “I Prefer Income” Spreadsheet

The “I Prefer Income” Spreadsheet is a research tool that provides focused information on all preferred stocks and ETD (Exchange Traded Debt) securities with a par value of $25 (convertibles not included). The Spreadsheet contains basic information and financial metrics on both the preferred stock & ETD security as well as the company that issued (or is currently responsible) for the security. This information will help provide the investor with the means to rate each security for safety, price, yield and timeliness so that risk/reward can be identified before making a buy/sell decision.

The Preferred Stock & ETD Securities Spreadsheet contains over 600 securities along with the parent company that is responsible for the security. This is not a simple list of securities. It provides a large amount of financial metrics, including both GAAP and Non-GAAP earnings. Some of the metrics include: 5 years & quarters of earnings, common stock dividend payout ratios, preferred stock dividend payout ratios, cash flow ratios, interest coverage ratios, debt ratios, price to book ratios and more.

With so much information, a filter has been added to allow the user to select up to 15 criteria to narrow the list. Example: I am using the filter to add 4 criteria:

• Type: Traditional Preferred cumulative stock
• Price: < ( less than) $25
• Yield: > (greater than) 6.5%
• Stock Div Payout: < (less than) .90

After the 4 criteria are entered and the Filter button clicked, 71 issues are displayed in the spreadsheet dated 2/8/2017. Now you can review those issues to see if they meet your investment requirements.

Update of Preferred Stocks & ETD Securities

As of 2/8/2019, the I Prefer Income Spreadsheet contains the following:

• Traditional Preferred cumulative stocks: 276
• Traditional Preferred non-cumulative stocks: 143
• Trust Preferred: 18
• ETD: 168
• Issues with price under $25: 316
• Issues with yield greater than 7%: 230

Dividend Updates

The “I Prefer Income” Spreadsheet also tracks all companies that have increased their common stock dividends every year for 5 or more years. We have named these companies as “Dividend Diamonds” and we list the number of years these companies have increased their common stock dividends. A Dividend Diamond is a positive metric that identifies a company as being strong enough to raise their dividend on a regular basis. There are currently 174 issues where the parent is designated as a Dividend Diamond.
We also track changes in common stock dividends. There are several companies listed on the I Prefer Income Spreadsheet that made announcements of changes in their dividends over the last week. Increases are great. Decreases may be cause for concern.

COMMON STOCK DIVIDEND INCREASES

ALL: Raised dividend from .46 to .50
BPR: Raised dividend from .315 to .33
KMPR: Raised dividend from .24 to .25
OAK: Raised dividend from .70 to .75
PRU: Raised dividend from .90 to 1.00
RNR: Raised dividend from .33 to .34

COMMON STOCK DIVIDEND DROP

PBI: Lowered dividend from .1875 to .05

NOTEWORTHY ARTICLE

Seeking Alpha has a lot of great authors that write very informative articles on all investment subjects. I especially appreciate and read the articles on income investing. Personally, I focus on higher yielding investments that “normally” do not have a lot of appreciation potential. There are exceptions, but normally, the higher the yield, the less likely there is for appreciation unless you buy when the stock is depressed, such as during the market drop in December. Suddenly, the opportunity for high yield and appreciation was available.
One of the authors I like is Rida Morwa. He writes about high yield opportunities. This week he wrote an article entitled “Global Economy Slows, Grab for Yield Will Accelerate”. If you have not already read it, you might take a minute to read it. SA only makes these articles available for 10 days, so better hurry. Here is the link:
https://seekingalpha.com/article/4237534-global-economy-slows-grab-yield-will-accelerate

SPREADSHEET FINANCIAL METRICS

Profit & Loss

In my last email, I wrote about the Profit & Loss (5 Yrs / 5 Qtrs) metric found in Column A & B. I also mentioned that the Spreadsheet has a macro that allows you to click on the cells in column A & B to display the historical record for both GAAP & Non-GAAP earnings. Unfortunately, the macro was not working at that time. Sorry. I hope you give it another try.
One thing to always keep in mind is that companies must report in GAAP (Generally Accepted Accounting Principles) for tax purposes; but for many, GAAP earnings are not representative of their true earnings or their ability to distribute dividends. For those companies, they turn to Non-GAAP earnings or cash flow. So when an investor is looking at determining the health of a company they are considering investing in, they must look at both GAAP and Non-GAAP results. To determine if a company reports Non-GAAP earnings, look at column E (Type Payout). A company that reports in GAAP, Cell E will show EPS (Earnings Per Share). Anything other than EPS will mean the company also reports in Non-GAAP. To see both, click your mouse on cell A or B and you will see a pop-up that shows both. An example is shown below. AHT reports Non-GAAP of AFFO (Adj Funds From Operations). Once you click on cell A or B, you will see that pop-up that displays EPS on top row and AFFO on bottom row. The difference is extreme. So make sure to use the macro in A & B to see the 5 year financial history.

TTM Stock Dividend Payout

Column F displays TTM (Trailing 12 months) Stock Dividend Payout. Simply put, it is the ratio of the common stock dividend compared to the earnings that are available to pay the dividend. It is very clear that you want the dividend to be less than the earnings so you are looking for payout of less than 1 (meaning 100%). This is one of the more important ratios. The lower the ratio the more sustainable the common stock dividend is. A healthy company is able to pay their common stock dividend; and even better, to increase the dividend over time. One thing to remember is that this ratio refers to the common stock dividend, not the preferred stock dividend. That ratio is reported in column G. More on that next week.

How to obtain the Preferred Stock & ETD Securities Spreadsheet

There is no charge for the I Prefer Income Spreadsheet. If you have received this article by email, I have attached the current spreadsheet. You can also go to www.ipreferincome.com and subscribe for a Free Membership. Once a member, go to the Spreadsheet page where you can download the file. I update the file every day after the market closes. In addition to the Spreadsheet, the website contains a great deal of information on preferred stocks and ETD securities. Please forward this email to friends or family members who are interested in income investing. They may find it helpful.

Let me know if you have any questions.

Thanks.

Rich Hill
I Prefer Income

Message To New Users

This is a follow-up to those people who asked for the Preferred Stock & ETD Securities Spreadsheet from I Prefer Income. I hope that you have been able to open and use the Spreadsheet. I update it daily and make it available to I Prefer Income members. This is a free membership located at: www.ipreferincome.com . Besides the spreadsheet, there is much more information on the website. Hope you visit and take advantage of the resources.

About the “I Prefer Income” Spreadsheet

The “I Prefer Income” Spreadsheet is a research tool that provides focused information on all preferred stocks and ETD (Exchange Traded Debt) securities with a par value of $25 (convertibles not included). The Spreadsheet contains basic information and financial metrics on both the preferred stock & ETD security as well as the company that issued (or is currently responsible) for the security. This information will help provide the investor with the means to rate each security for safety, price, yield and timeliness so that risk/reward can be identified before making a buy/sell decision.
The Preferred Stock & ETD Securities Spreadsheet contains over 540 securities along with the parent company that is responsible for the security. This is not a simple list of securities. It provides a large amount of financial metrics, including both GAAP and Non-GAAP earnings. Some of the metrics include: 5 years & quarters of earnings, common stock dividend payout ratios, preferred stock dividend payout ratios, cash flow ratios, interest coverage ratios, debt ratios, price to book ratios and more. It also includes other basic information such as type of security (preferred, cum & non cum, trust, ETD), industry, floating rate info, tax status, coupon rate, call date, maturity date, moody & S&P ratings, price, dividend, yield, yield to call, number of years of consecutive dividend increases (dividend diamonds), average yield of common, average dividend growth of common, 52 week high and low, date dividend is paid, X-dividend date, web address, link to quantumonline, etc.

With so much information, a filter has been added to allow the user to select up to 15 criteria to narrow the list. Example: If you use the filter to limit the list to a preferred stock with a price less than $25, and has a yield greater than 6.75%, and has been profitable every year for the last 5 years, and has a preferred dividend payout of less than .50; the results will display 41 matches in alphabetical order. Another feature: If the company uses Non-GAAP earnings such as FFO, AFFO DCF, etc., the spreadsheet uses a macro to show both EPS and the Non-GAAP earnings so you can compare the differences.

Update of $25 Par Preferred Stocks & ETD Securities

As of 2/1/2019, the I Prefer Income Spreadsheet contains the following:

• Traditional Preferred stocks, cumulative, $25 par: 259
• Traditional Preferred stocks, non-cumulative, $25 par: 128
• Trust Preferred, $25 par: 18
• ETD, $25 par: 159
• Issues with price under $25: 287
• Issues with yield greater than 7%: 220

Dividend Updates

Justin Law maintains the Dividend Champion list that was originally created by David Fish. This list tracks companies with a history of consistently increasing their dividends. The Dividend Champions list is separated into three categories based on how long companies have maintained the streak of annually increasing dividends: Champions (25 or more years), Contenders (10 to 24 years), and Challengers (5 to 9 years). Justin provides these 3 lists for free at: Drip Investing Resource Center or you can download the excel file directly at: Excel Spreadsheet
The “I Prefer Income” Spreadsheet also tracks all companies that have increased their dividends every year for 5 or more years. We have named these companies as “Dividend Diamonds” and we list the number of years these companies have increased their dividends. A Dividend Diamond is a positive metric that identifies a company as being strong enough to raise their dividend on a regular basis. There are currently 174 issues where the parent is designated as a dividend diamond.

And speaking of dividends, there are several companies from the I Prefer Income Spreadsheet that made announcements of changes in their dividends over the last week. Increases are great. Decreases may be cause for concern. Time for some research if you own the stock or are considering buying.

INCREASES

  • GATX: Raised dividend from .44 to .46
  • GLP: Raised dividend from .475 to .50
  • D: Raised dividend from .835 to .9175
  • CBSH: Raised dividend from .224 to .26
  • SCHW: Raised dividend from .13 to .17
  • GLOP Raised dividend from .53 to .55

DROPPED

  • DLNG: Lowered dividend from .25 to .0625

Spreadsheet Metrics

There are a lot of financial metrics that are located on the spreadsheet. For those who are long time income investors, you may be familiar with many of them But for others, some or all of the metrics are not something you are familiar with. I will go over a couple of the metrics in this email. I will explain other metrics with each new email.

Profit & Loss (5 Yrs / 5 Qtrs): When you look at the spreadsheet, the first columns are A&B. These cells contain Profit and Loss results for the last 5 Years and 5 Quarters for the company in the row the number are located. Example cells A8 & B8 show (5) 0 & (5) 0. This means that ABR has been profitable the last 5 years and the last 5 quarters. Now to make this a little more complex, these figures represent GAAP earnings. For some companies, GAAP earnings are not representative of their real earnings and cash flow. For many, Non-GAAP earnings are much more representative of their real earnings or cash flow. An example are REITS. These companies deal in real estate. GAAP earnings force them to deduct real estate depreciation from earnings and in many cases, it creates a loss where non exists. So REITS prefer to use FFO or AFFO as the Non-GAAP earnings metric that best describes their real earnings. If you look at column E, these cells describe the Type of earnings each company reports in. Companies that use GAAP earnings will show EPS in column E. For others that use Non-GAAP earnings, that cell may show FFO, AFFO, CAD, NII or other Non-GAAP earnings.

So when you look at cells A & B, just remember that it is show GAAP results. If you see that cell E is shown as something other than EPS, you know that the numbers in A & B are really not representative of their Non-GAAP earnings. To see those figures, just click on the number in A or B and a macro will kick in and display a pop-up that shows results for both EPS and the Non-GAAP earnings. Take time to understand this as profits are very important.

One last thing about Profit & Loss. Cell A & B have 2 numbers. The first number is the number of profitable years. The 2nd number is the number of years with losses. The ( ) around the number represents the last year. So in the case of ABR, cell A shows (5) 0. This means that ABR has been profitable 5 out of the last 5 years and the last year was profitable. If the results were 4 (1), it would mean that the company was profitable 4 out of the last 5 years and the last year reported a loss. Just remember that no matter what the company reported in cells A & B, if cell E shows a Non-GAAP type of earnings, then you need to click on cells A or b to see the pop-up to show both GAAP & Non-GAAP earnings.

How to obtain the Preferred Stock & ETD Securities Spreadsheet

There is no charge for the I Prefer Income Spreadsheet. If you have received this article by email, I have attached the current spreadsheet. You can also go to www.ipreferincome.com and subscribe for a Free Membership. Once a member, go to the Spreadsheet page where you can download the file. I update the file every day after the market closes. In addition to the Spreadsheet, the website contains a great deal of information on preferred stocks and ETD securities. Please forward this email to friends or family members who are interested in income investing. They may find it helpful.

Let me know if you have any questions.

Thanks. Rich
I Prefer Income

Using spreadsheet filter to identify top choices

Being an income investor with a preference for safety and higher yields, I had been tracking preferred stocks, ETD securities, BDC, MLPs, REITS, MREITS, and CREITS for years. I soon realized that I needed additional information to do my own quality research. What I needed was access to a database full of information and financial metrics, including GAAP and Non-GAAP metrics.

With this in mind, here is an example of a challenge many are facing and how a good data source like I Prefer Income can help.

What if you just inherited $50,000 and want to identify and invest in several securities that are reasonably safe and generate income with above average yields? You are retired and already have a portfolio of income generating stocks and bonds and have decided to invest this new money in a few preferred stocks and ETD securities to get more diversity in your income portfolio.

You have done your homework over the years and have a basic understanding of some of the important metrics that are used to identify companies that are financially healthy. Luckily, you have access to the IPI! spreadsheet of preferred stocks and ETD securities that contain a filter program that can search for and locate securities with your preferences.  Soon I open the spreadsheet, the filter and submit my criteria of:

1 Price of less than $26
2 Yield greater than 6%
3 Yield to call greater than 6%
4 Stock dividend payout ratio of less than .8
5 Preferred stock payout ratio of less than .8
6 Company must be a dividend diamond (5 or more years of consecutive dividend increases)

You have decided to search for companies where the price wasn’t too far above the call price as long as the yield was above 6% and the yield-to-call was also greater than 6%. You had learned a long time ago that yield was important, but to always know what the yield-to-call was so you would not get surprised when or if the security was called. In the current market, many preferreds and ETD securities have gone past the call date, so they could be called at any time. Thinking that the forward yield displayed today will last forever could just be wishful thinking. Hope for the best, but plan for the worst.

A couple seconds after submitting the criteria, the results were display . It showed 6 companies (gray rows) with a total of 10 securities located directly under the parent company. Those 6 companies and their 10 issued preferred stocks met all of the criteria that was required. The parent companies and issued preferreds were: BFS, ENB, INN, NGHC, SOHO and SRC.

Here is  a summary of the results as well as the full report showing a volcano of information and financial metrics in the 2nd table below.

Summary / As of 9/11/18

Full Report / as of 9/11/18

The results show 6 companies with 5 traditional preferreds, 3 non-cumulative preferreds and 2 ETD securities. The 10 issued securities have yields between 6.4% and 7.8% with yields-to-call of 6% to 8.5%. All 6 companies earn the designation of being Dividend Diamonds with ENB having the best record of 22 consecutive years of increasing dividends. All report good stock payout ratios of under .80 and preferred payout ratios of even lower.

The bottom line is that investors are wise to get as much investment advice and help from as many sources as possible. Analysts, including SA authors, provide valuable information. The more you read the more you will learn. Don’t limit yourself to just reading what others are recommending. Learn to be a fisherman so you do not have to obtain your fish from others. Find your own sources of data such as I Prefer Income and begin to “rely on yourself” to do your own research and make your own investment decisions.

First Post To Seeking Alpha

My name is Rich Hill (I Prefer Income). I am writing to introduce myself and my new website – https://www.ipreferincome.com

As my Seeking Alpha profile says; “I am retired”, but as an investor, you never really retire. There is always more to learn and investments to discover that will help you and your family reach or exceed your financial goals.

I have been reading SA articles for many years to provide myself with sound investment opportunities. Eventually, I concluded that I was leaning on SA authors’ informative articles a little more than I should. I realized that I was letting the authors do the research for me. Yes, I benefited from their work and learned a lot, but I also realized I wanted to take more control of my own investment decisions by becoming my own analyst. I wanted to “rely on myself” for doing the research that would lead to discovering sound investments that met my personal requirements.

Being an income investor with a preference for safety and higher yields, I had been tracking preferred stocks, ETD securities, BDC, MLPs, REITS, MREITS, and CREITS for years. I soon realized that I needed additional information to do quality research. Having a penchant for doing things myself, I began the process of re-programming my old excel spreadsheet program to automatically pull data in from 2 outside data sources. This provided a huge amount of financial information; but unfortunately, these resources did not have Non-GAAP information, which is key to analyzing many of these securities. That meant that I would have to scour financial statements and SEC documents to obtain these figures on my own.

Without going into the details of this massive project, the results are the website ( https://www.ipreferincome.com) and the spreadsheet program that provides information on preferred stocks and ETD securities. The spreadsheet includes all preferred stocks and ETD securities (does not includes convertibles), along with their parent or issuing company. It also includes a large amount of important financial metrics to help the investor in their research efforts. These metrics include not only GAAP, but also Non-GAAP metrics. As an example, we display both GAAP earnings and Non-GAAP earnings or cash flow. See example of EPS and AFFO earnings for AHT.

With this spreadsheet program, I am now better able to do my own research and to make sound investment decisions without getting the approval or nod from an outside SA analyst. Ok, I still read all of the articles and take their advice, but I am now a fisherman, not someone that must obtain their fish from others. (Ok, that sounds corny, but it is true). SA analysts are always using financial metrics to back up their views on a company’s financial strength. Here are some of the metrics and info we provide: Last 5 years and 5 quarter of profit & loss results, dividend stock payout ratio, preferred stock dividend payout ratio, net cash flow payout ratio, Interest coverage ratio, debt to EBITDA ratio, debt to equity ratio, price to book ratio, Moody’s and S&P credit ratings, forward yield, yield to call and dividend diamonds (companies that have consecutively increased dividends 5 or more years). One of the things I am most proud of is to identify the companies that report in Non-GAAP earnings or cash flow and to then provide that information by comparing their GAAP earning to Non-GAAP earnings.

Another important feature of our program is the use of a filter program using 15 different criteria. Since we track over 500 preferred stocks and ETD securities and the parent or issuing company, there is a lot of information to sift through. Using the filter is easy. Select the criteria of interest (lets say: Price < 25.50, Yield > 6, Yield To Call > 6.5, Pref stock payout < 1 ) and within about 3 seconds the program will kick out a list of every security that meets that list of requirements along with all of the metrics and information that we make available. Click here to see a video on how to use the filter.

I am writing to inform those with an interest in income investing that we are now opening our website and spreadsheet to the public. To view the website, go to www.ipreferincome.com . However, to have access to the spreadsheet, you will have to become a member. There is currently a 1 MONTH FREE PLAN that will allow you to download the spreadsheet to your own computer for review. (Note: If for some reason you do not wish to join at this time; but would like to view the spreadsheet program, send me an email and I will send you an email with the spreadsheet attached.) The website provides a lot of helpful information, including videos, to help the visitor and member. Additional information is in the works. If you do get a chance to download and review the spreadsheet, it would be a good idea to review the Spreadsheet Basics article or the video series located on the Info page. If you don’t, make sure to at least click on the User Guide, Filter button and yellow macro cells.

I appreciate the benefits of preferred stocks and ETD securities. They provide more safety that the common stock of their parent and offer a higher yield than can generally be found in today’s marketplace. To learn more, please visit our website and subscribe. I believe we provide important tools for all income investors interested in safety and income.

Thank you.

Rich Hill
I Prefer Income

New Spreadsheet Basics Videos on Preferred Stocks & ETD Securities

Just got finished with 3 of the I Prefer Income  Spreadsheet Basic Videos and posted them to YouTube.  This was my first try at creating, editing, reducing and uploading them to the YouTube website.  Quite a challenge.  I promise to get better.  The 3 videos are:

Spreadsheet Basics 1 – demonstrates how to download and open the IPI! Spreadsheet on Preferred Stocks & ETD Securities.

Spreadsheet Basics 2 – overview of the user guide, macros and general layout.  Very Important.

Spreadsheet Basics 3 – provides information on several important financial metrics every investor will want to know.

To view the videos, click on the name.  Once at Youtube, I recommend opening to “full view”  to get a better view of the spreadsheet and what is being described.  If you have any ideas for future videos, let me know in the comments.

Thanks,  Rich

Dividend Diamonds

Dividend Diamonds are those companies that have increased their dividends every year (consecutively) for at least 5 years. At this time (8/31/2018), there are 79 companies that have issued preferred stocks and ETD securities that have earned the Dividend Diamonds designation, including 2 that have reached 50 years. We list each company in column AK under the heading of Div Dmd. We display the number of years they have increased their dividend. Also, we display the current list of 79 companies that are in the IPI! spreadsheet in image 1 below.

Unfortunately MHLD lost the designation during this period because they cut their dividend after a very tough year.

This designation is an important metric and we feel it is important to include it in the IPI! spreadsheet. And be sure to use the filter program to include them in your search. ♦

Image 1, Dividend Diamond List – As of 8/31/2018