Income Securities for a Queasy Stomach

 

If the ups and down of the stock market make you queasy, then income securities might calm the jitters. In The November 2000 issue, I wrote an article called “Income Securities on Sale .”

At that time, investors wanted stocks and opportunities for appreciation. Income security prices had languished and I termed them “on sale.” The prices have since risen somewhat as interest rates have declined and some investors have decided that owning fixed income securities may not be a bad idea.

Here is a sample of preferred shares from established companies (these samples are illustrated as examples, not recommendations). If you would like an updated list or want to know more about securities yielding 8%, simply check off on the attached coupon.

 

S&P Rating

Description

Symbol

Div

Rate

Next Payment

Price

Current Yield

Yield to Call

Call

Date

Call

Price

 

 

 

 

 

 

 

 

 

 

A+

ABN AMRO Cap Fund II 7.125%

ABNprB

0.4453

09/30/2001

24.78

7.19%

7.48%

03/31/2004

25

A+

Farmers Group 8.25%

FIGprB

0.5156

07/02/2001

25.6

8.06%

8.02%

12/31/2025

25

A

Chase Preferred 8.10%

CMBpr

0.5062

09/30/2001

25

8.10%

8.09%

09/17/2001

25

A-

Allstate Fin 7.95% QUIPs

ALLprA

0.4968

09/30/2001

25.16

7.90%

6.40%

11/24/2001

25

A-

Duke Capital Fin II 7.375% QUIPs

DUKprU

0.4609

09/30/2001

25

7.37%

7.37%

09/30/2003

25

A-

Travelers P&C 8.08%

TAPprA

0.505

09/30/2001

25.22

8.01%

**

any

25

A

American General 8.45%

AGCprM

0.54

07/02/2001

25.3

8.54%

**

any

25

BBB+

Capital Re LLC 7.65% MIPs

KREprL

0.4781

08/01/2001

21.75

8.79%

**

any

25

BBB+

Public Storage 8.875%

PSAprG

0.5546

09/07/2001

24.89

8.91%

**

any

25

BBB

Sierra Pacific Power 8.60%

SRPprT

0.5375

07/02/2001

24.48

8.78%

28.54%

07/29/2001

25

BBB

Lincoln National 8.35%

LNCprY

0.5218

07/02/2001

25.51

8.18%

**

8/20/'2001

25

BBB

Avalon Bay Communities 9%

AVBprF

0.5625

08/01/2001

25.12

8.96%

**

any

25

BBB

First Industrial Realty 9.5%

FRprA

0.5937

09/30/2001

25.02

9.49%

**

any

25

BBB

AT&T Capital Corp 8.25%

NCD

0.5156

09/30/2001

25.5

8.09%

7.33%

11/15/2003

25

BBB

Nexen 9.75%

NXYpr

0.6093

09/15/2001

25.46

9.57%

8.87%

10/30/2003

25

BBB

NVP Capital I 8.20%

NVPpr

0.5125

09/30/2001

22.74

9.01%

21.10%

04/01/2002

25

BBB-

Placer Dome 8.625%

PDGprA

0.539

09/28/2001

22.8

9.46%

28.54%

12/17/2001

25

BBB-

Gables Residential Trust 8.3%

GBPprA

0.5187

08/29/2001

23.57

8.80%

14.03%

07/24/2002

25

BBB-

BRE Properties 8.5%

BREprA

0.5312

09/30/2001

25.25

8.42%

8.07%

01/28/2004

25

BBB-

Newscorp 8.625%

NOPprA

0.539

09/30/2001

24.37

8.85%

**

any

25

 

**purchase not recommended above $25 per share