08-25-2021, 11:39 AM
(08-25-2021, 07:25 AM)fenders53 Wrote:(08-24-2021, 02:44 PM)mid range Wrote: You might consider buying UNMA on a dip and holding a year. It is a UNM note currently at $27.02. You would have excellent downside protection. It is callable at $25 on 6/15/2023. As long as the common pays such a large dividend there is a possibility it won't be called in 2023. The risk with UNM common is that they, like anyone else, could lower their dividend.$2 loss on share price in under 2 years?
UNM is at $26.54 with an annualized dividend of $1.20. UNMA is at $27.01 with an annualized dividend of $1.56.
I think this is more of a play on it not getting called in 2 years. Though if it does, I doubt that the dividends would even cover the loss since you're less than 2 years away from possibly getting called. Risk is too great from me. I do like a good preferred stock, but I wouldn't touch this one without a lot more research. Doesn't pass my initial smell test so I wouldn't be buying it.