Preferred Stocks of REITs
By: Tim McPartland,
Real estate investment trusts (REITs) are big issuers of Preferred Stocks and we list them below. Most REIT Preferred Stocks are unrated.
From this page, you can start your research on Preferred Stocks. With current prices and yields, you should be able to select a few that appear to meet your yield requirements.
Preferred shares are issued by a corporation as part of its capital structure.
- Preferred stock have a “coupon rate” — the interest rate you will be paid. This interest rate remains constant on most — but not all, preferred issues. A small number of issues have a rate that “floats,” based upon a baseline such as Libor.
- Dividends are either cumulative, — meaning that dividends continue to accrue if they have been suspended, but they are not paid until the company decides to pay them after suspension — or non-cumulative. Non Cumulative means they do not continue to accrue (they are gone forever). In either case, if the dividends are suspended, the company is likely in deep financial trouble.
- Dividends are generally paid quarterly, although a few pay them monthly.
- Preferred shares normally carry no voting rights (unlike common shares).
- Preferred shares generally have NO maturity date (most are perpetual).
How do You Buy Preferred Stocks?
You buy Preferreds just like you would any stock. Put in an order in your brokerage account and wait. The prime difference with preferred stocks is most trade very “thinly” with little volume, so you should always use “limit” orders or you may pay way more than is necessary for your shares.
To get more information on preferred stocks, screen them, set up your own portfolio and receive email alerts, go to www.preferred-stock.com now.
Dividends on Preferred Stocks of REITs are NOT eligible for preferential tax treatment (they are NOT qualified Dividends). The reason for this is that the REIT pays no taxes, thus you receive a larger dividend, but it is taxable.
All issues below are $25 issues except for 1 issue which is a $50 issue highlighted in grey.
As always any issue paying monthly distributions are highlighted in grey.
Clicking on the security name below will take you to the individual issue page where you can do some further due diligence.