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Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Floating Away: The Magic of Floating Rate Preferred Shares

Floating Away: The Magic of Floating Rate Preferred Shares

Paperback

Series: Great Investing, Book 245

Investing & Finance

ISBN13: 9798329433999
Publisher: Independently Published
Published: Jun 25 2024
Pages: 68
Weight: 0.31
Height: 0.18 Width: 6.00 Depth: 9.00
Language: English

Rarely do things surprise me. As an investor, it's my job to try to predict the future as best as possible.

However, I recently received a 31% dividend increase from one of my preferred shares. For four years, I had received the same great dividend payment, and then it increased.

I reviewed its prospectus and discovered it was a floating-rate preferred share that reset to a dividend payment of 3-month LIBOR plus 5.317%. In this case, my new dividend yield is 11%.

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King, Joshua

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Investing & Finance