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
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.
- 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
- DLNG: Lowered dividend from .25 to .0625
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.
I Prefer Income