FMD Capital Management

Posts Tagged: vrp

Preferred Stock ETFs Face New Test

Written by David Fabian, March 13th, 2017

Preferred stocks offer the distinction of being unique hybrid instruments with qualities of both stocks and bonds.  In that manner, they offer healthy dividend yields alongside a favored position in the capital structure of many companies that issue these securities.

The reason company’s issue preferred shares are to raise capital from investors that are seeking an attractive yield without adding traditional debt (bonds) that carry strict maturity dates and covenants.  Preferred stocks can also be “callable” from the issuer, who has the right to redeem them at a certain price or time at their discretion.   Read more

Preferred Stock ETFs Show Perseverance

Written by David Fabian, June 24th, 2015

The income investing landscape has certainly shifted in 2015, with many dividend fixtures trading well below their starting point for the year. Stalwart asset classes such as REITs, utilities, MLPs, and even dividend paying common stocks have struggled to make positive headway and in some cases are more than 10% off their recent highs. Read more