Highest Yielding 'Investment Grade' Preferred Stocks With Qualified Dividends
Published Jul 12, 2020 on Seeking Alpha

Seeking AlphaDividend IdeasHighest Yielding 'Investment Grade' Preferred Stocks With Qualified DividendsJul. 12, 2020 12:38 PM ET|| Includes: ALP.PQ, ALPVN, APO, APO.PA, APO.PB, APRCP, APRDM, APRDN, APRDO, APRDP, ARES, ARES.PA, BAC, BAC.PA, BAC.PB, BAC.PC, BAC.PE, BAC.PK, BAC.PL, BAC.PM, BAC.PN, BACRP, BHF, BHFAL, BHFAO, BHFAP, BML.PG, BML.PH, BML.PJ, BML.PL, FRC, FRC.PF, FRC.PG, FRC.PH, FRC.PI, FRC.PJ, KIM, KIM.PL, KIM.PM, KKR, KKR.PA, KKR.PB, NTRS, NTRSP, PRE, PRE.PF, PRE.PG, PRE.PH, PRE.PIby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryThis article is for those who are concerned with the current economic landscape and are looking for relatively high after-tax yields but also want high quality.
We look at the universe of fixed-rate preferred stocks that have an investment grade rating from S&P and that pay “qualified” dividends (taxed at a low rate).
Our research found that APO-B, ARES-A, and PRE-H provide the best yield metrics among investment grade preferred stocks.
These 3 preferreds trade nearly $2.00 per share below their year-to-date highs (on average) creating the possibility of near-term price appreciation as well as very high after-tax yields.
Co-produced with Preferred Stock Trader
Introduction
Investors have had a wild and scary ride during 2020. For many, it has been very painful. Despite the market risks, most investors have not abandoned the markets as yields on Treasury Bills, Treasury Bonds and Certificates of Deposit just do not provide much of a return. This article focuses on relatively conservative investors who are looking at achieving a good after-tax stream of income while trying to minimize risk. In our research, we have uncovered preferred stocks from 3 companies which we think should be core holdings for any fixed-income portfolio. Those 3 issuing companies are:
ARES Management (ARES) Apollo Global Management (APO) PartnerRe... Read more