02-25-2014, 03:39 PM
(This post was last modified: 02-25-2014, 03:41 PM by hendi_alex.)
Quantum.com is a great location to get info on preferred stocks. The site requires registration, but is free. Preferred shares trade in a range around redemption value, usually $25 and at a specified yield (fixed quarterly payment). The extent to which you buy under redemption value increases the effective yield, and vice versa for paying a premium to redemption value. The shares usually carry a fixed period over which the company can not redeem the shares, but after that are subject to be called at any time. There is no maturity date for most preferred shares.
The following description of 0-F was copied from Quantum:
QUANTUMONLINE.COM SECURITY DESCRIPTION: Realty Income Corp., 6.625% Monthly Income Class F Cumulative Redeemable Preferred Stock, liquidation preference $25 per share, redeemable at the issuer's option on or after 2/15/2017 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 6.625% ($1.65625) per annum are paid monthly on 15th day of each month to holders of record on the record date which will be the first day of the month in which the payment is due (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Upon the occurrence of a change of control the company will have the option to redeem the preferred shares at $25 per share plus accrued and unpaid dividends. If the company has exercised their redemption right, the holders will not have the following conversion right. Upon the occurrence of a change of control, and the company has not provided notice that they intend to redeem the preferred shares, the holder will have the right to convert the preferred shares into common shares under certain circumstances (see the prospectus for details). Dividends paid by preferreds issued by REITs are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. In regard to the payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
All of the above is fairly typical, though lots of preferred shares are not cumulative.
Here is a link to the quantum site, but the link may not work without registering first.
http://quantumonline.com/search.cfm
The following description of 0-F was copied from Quantum:
QUANTUMONLINE.COM SECURITY DESCRIPTION: Realty Income Corp., 6.625% Monthly Income Class F Cumulative Redeemable Preferred Stock, liquidation preference $25 per share, redeemable at the issuer's option on or after 2/15/2017 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 6.625% ($1.65625) per annum are paid monthly on 15th day of each month to holders of record on the record date which will be the first day of the month in which the payment is due (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Upon the occurrence of a change of control the company will have the option to redeem the preferred shares at $25 per share plus accrued and unpaid dividends. If the company has exercised their redemption right, the holders will not have the following conversion right. Upon the occurrence of a change of control, and the company has not provided notice that they intend to redeem the preferred shares, the holder will have the right to convert the preferred shares into common shares under certain circumstances (see the prospectus for details). Dividends paid by preferreds issued by REITs are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. In regard to the payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
All of the above is fairly typical, though lots of preferred shares are not cumulative.
Here is a link to the quantum site, but the link may not work without registering first.
http://quantumonline.com/search.cfm
Alex