Annaly Capital Preferreds Offer Tempting Yields
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Vlae Kershner3.01K FollowersFollow5ShareSavePlay(5min)CommentsSummaryAnnaly Capital Management preferreds offer attractive yields and lower volatility versus common shares, supported by government-guaranteed mortgage assets.NLY's floating preferred F and I series yield about 9.4% and trade near call value, with a yield advantage over the G series.The J series yields 8.7%, cannot be called until 2030, and offers fixed-rate stability if rates decline, making it marginally the best buy.Dividends are cumulative and safer than common, but lack preferential tax treatment, favoring placement in tax-deferred accounts. SewcreamStudio/iStock via Getty Images Proceeds from the call and tender offer for the two issues of Southern California Edison preferred that I wrote about earlier this month will hit my brokerage account this week. Wanting to replace the incomeThis article was written byVlae Kershner3.01K FollowersFollowI am a 35-year stock market investor, MBA, and retired reporter and editor for the San Francisco Chronicle. My primary style is a mix of growth and income, with attention to special situations.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NLY.PR.F, NLY.PR.I, NLY.PR.J over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.