I Am Buying Preferred Stocks Hand Over Fist =========================================== May 16, 2025 8:30 AM ET, , , , , , , 1 Like Follow Play(9min) Summary * Experience "preferential treatment" in your portfolio - and get paid for it. * Historically, preferreds enjoy steady income, low volatility, and low correlation to common stocks and bonds. * We discuss two investment-grade preferreds offering yields of up to 8.6%. * Looking for more investing ideas like this one? Get them exclusively at High Dividend Opportunities. boggy22/iStock via Getty Images _Co-authored with Hidden Opportunities_ There’s something undeniably comforting about being treated specially. Think about you embarking on a vacation, and you are being invited to board the aircraft early, while others wait. Upon landing, a chauffeur greets you at the airport holding a sign bearing your name. At your hotel, you skip the front desk and head straight to a quiet lounge where everything has already been arranged. No crowds. No confusion. Just the quiet ease that comes with knowing you’re being looked after. Of course, that kind of treatment usually comes at a price. But in the stock market, you can enjoy a similar kind of preferential treatment – but get paid for it. Preferred securities offer income that takes priority over common dividends, providing a steady and often tax-advantaged stream of payments. Historically, preferreds have shown lower correlation to traditional stocks and bonds, and they tend to be less volatile, giving your portfolio a smoother, more resilient ride through shifting markets. We will now explore two preferreds from investment-grade issuers that offer exactly that kind of special treatment you deserve in your retirement. Pick #1: ATH Preferreds & Baby Bond – Up To 7.6% Yields **Athene Holding Ltd.** is a leading retirement services company and a wholly owned subsidiary of Apollo Global Management (). In 2024, Athene ranked first in , with $36 billion in sales for the 2nd consecutive year. In addition to this, the company also topped its peer group in fixed market sales ($35 billion), fixed-rate deferred sales ($13 billion), fixed indexed annuity sales ($13 billion), and back channel sales ($20 billion) &gt; "With a rapidly growing retirement age population, and a heightened need for guaranteed lifetime income in retirement, our annuity solutions are serving a vital role for retirement savers and retirees," – _Grant Kavalheim, President, Athene_ Athene maintains a strong capital profile, with $61.7 billion in available liquidity. The company also maintains a highly conservative investment profile, with 95% of its assets in fixed income or cash. Athene’s balance sheet was rated A+ by leading credit agencies. Investor Presentation Athene reported $4.9 billion in net income (after factoring in $552 million in interest expenses) and $1.8 billion in net cash from operating activities. In comparison, the company spent $181 million on preferred dividends, implying substantial coverage for the fixed-income investors. Athene has five public preferreds and one baby bond, offering attractive returns at bargain prices. At the time of this writing, the fixed-rate ATH-D offers a 7.3% yield and ~50% upside to par. Given its low coupon, it is unlikely to be redeemed anytime soon. For investors seeking floating-rate exposure, ATH-E presents a 7.7% yield, locked until December 2027, after which it will float at a rate of 5-Yr Treasury + 3.962%. #### Preferred Securities * **6.35% Fixed-to-Float, Non-Cumulative, Series A, Redeemable Perpetual Preferred** () – Yield 6.7% * **5.625% Fixed Rate, Non-Cumulative, Series B, Redeemable Perpetual Preferred** () – Yield 7.2% * **6.375% Rate Reset, Non-Cumulative, Series C, Redeemable Perpetual Preferred** () – Yield 6.3% * **4.875% Fixed Rate, Non-Cumulative, Series D, Redeemable Perpetual Preferred** () – Yield 7.3% * **7.750% Rate Reset, Non-Cumulative, Series E, Redeemable Perpetual Preferred** () – Yield 7.6% #### Baby Bond * **Rate Reset Junior Subordinated Debentures due 3/30/2064** () – Yield 7.3% _Note: ATH-C is likely to be redeemed soon after the call date due to its high floating-rate coupon._ ATHS is the company’s only baby bond, presenting a 7.3% yield and ~2% upside to par. This security becomes callable after March 30, 2029, making it a steady high-yielder for the next ~5 years. After this call date, ATHS experiences a rate reset, at 5-Yr Treasury + 2.986%, implying a high possibility of a reduced yield. Data by YCharts Since Athene prefers to pay qualified yields, the preferreds are a better opportunity than the baby bond. However, ATHS is a suitable option for international investors, as there will be no U.S. tax withholding on interest payments. Pick #2: CCIF Term-Preferred – Yield 8.6% **Carlyle Capital Income Fund** () is a CEF that focuses primarily on investing in equity and junior debt tranches of CLOs. In fact, **CCIF** is the newest publicly traded CEF that invests in CLOs with the objective of generating high levels of current income. _Note: CCIF was formed in 2023 after the fund was reorganized from the former Vertical Capital Income Fund after Carlyle took over its management. Price charts from Google and YCharts indicate historical prices of its predecessor entity._ CCIF’s portfolio is diversified across 52 unique CLO investments managed by 27 different CLO Managers. On a look-through basis, these CLOs provided exposure to 1,391 unique underlying loan obligors across a range of industries, with a total of 1,926 underlying loans. As of December 2024, the top 10 Underlying Obligors represent 4.88% of the total exposure, with the largest individual obligor being TransDigm at 0.58%. This indicates a relatively low concentration risk among the top underlying borrowers. CCIF reported an NAV of $7.44/share at the end of 2024, making it a rare CLO CEF to trade at a discount to NAV. The CEF’s Q4 NII was $0.26/share and core net investment income was $0.44/share. During the fourth quarter, CCIF made new CLO investment deployments of $12 million with a weighted average GAAP yield of 16.83%. The CEF’s total portfolio weighted average GAAP yield was 17.22% as of December 2024. CCIF has maintained steady monthly distributions with two raises since its restructuring in mid-2023. The CEF reports that the dividend is supported by the Core NII, and recurring cash flows amounting to $0.70 per share for Q1 2025, and ~$0.49 per share of recurring cash flows for Q2 2025. Data by YCharts CCIF has one term-preferred, CCIA, rated BBB+ by Egan-Jones, carrying a maturity date of October 31, 2028. * **8.75% Term-Preferred Shares Series A due 2028** () – Yield 8.6% From the company’s 2024 and Q1 2025 numbers, we see that there is adequate coverage for the interest expenses from the CEF’s operations. Author’s Calculations In order for CCIA to be called early, the CEF will have to be able to issue new securities at a significantly lower coupon, which could be unlikely given the elevated interest rate environment, with a lower probability of significant rate cuts in 2025. This security matures in 2028, presenting the prospect for steady 8.6% annualized yields for the next 5 to 40 months. Conclusion Preferred securities offer a unique blend of income, stability, and diversification – qualities that are increasingly valuable in retirement. At , we recommend at least a 40% allocation into fixed income, and maintain a deeply diversified portfolio of +45 individual preferreds, and +20 baby bonds. These provide much-needed insulation from fears and noise that tend to induce volatility in common equities. By selectively adding preferreds from investment-grade issuers like Athene and CCIF, investors can access steady income with a lower risk profile than common equities or high-yield bonds. For retirees and income-focused investors, preferreds serve as a quiet, consistent performer in the background, providing preferential treatment not just in name, but in real financial outcomes! **High Dividend Opportunities, #1 On Seeking Alpha** Save yourself thousands of dollars by creating a portfolio that pays you to hold it. No selling required to fund your retirement dreams. Tired of going it alone or visiting a financial advisor who just doesn't seem to care? Join our lively group! Our **Income Method generates**strong returns, making**retirement investing less stressful and straightforward**. Join us to get access to our **Modeltargeting 9-10% yield**. **Don't miss out on the Power of Dividends**! **We're offering a month-long paid trial for $49 plus a bonus 5% off!** This article was written by 122.11K Followers Follow Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone.

I Am Buying Preferred Stocks Hand Over Fist

The article discusses investment-grade preferred stocks offering high yields, focusing on two examples: Athene Holding Ltd.'s preferreds with up to 7.6% yields and Carlyle Capital Income Fund's term-preferred with 8.6% yield. It highlights preferreds' benefits, including steady income, low volatility, and tax advantages, while analyzing financial details and market positioning.