Buy This Mispriced Preferred Stock Before Investors Realize It Now Pays A Qualified Dividend - Ares Management

Co-produced with Preferred Stock Trader for High Dividend Opportunities.
With the recent market correction, the preferred stock space has seen a large pullback. This pullback has been aggravated by fears of rising interest rates. Note however that the Federal Reserve Chairman Mr. Powell just signaled last week that interest rates are nearly back to "normal" - meaning that there is not going to be many interest rate hikes going forward. I believe that 2019 will be the last year that the Fed will be able to hike rates again. Therefore the recent pullback in the Preferred Stock space has created a buying opportunity, and we have been taking advantage.
Part of our service we provide to our investors includes the search and identification of mispriced Preferred Stocks (not only in the absolute, but also compared to other Preferred Stocks), and we have just identified a new one. This preferred stock that we are recommending today is issued by a Private Equity Company ARES Management Corporation (NYSE: ARES). The Preferred Stock is Ares Management LP 7% Non Cum Pfd Registered Series A (ARES.PA) or ARES-A. Why is ARES-A opportunistic? Because the issuing company ARES has just decided to convert from an L.P. status to a C-Corp Status, and stopped issuing K-1 tax forms. Instead, it will issue going forward 1099 tax forms, and it seems that the markets have not factored this into the price of ARES-A. Also importantly, the dividend will become a qualified dividend. ARES-A... Read more