Rocky’s Weekly Stock Picks
If summer work hasn’t kept you busy, then certainly 4th of July weekend has. Who has time to worry about investing? We rolled calls up and out, but forgot to turn on a DRIP. Dividend Reinvestment Plans automatically reinvest your dividend payments. Since we had cause to sit down and look at our portfolio, we did a little bit of finance homework.
This week’s picks are specifically Preferred stocks. Maybe. We’ll see after the first one, which will be AFIN. Well, AFINP.
AFINP - $26+ a share, with a 7% annual dividend. Cumulative and Redeemable, Series A.
T-PA - Just over $27/share, preferred Series A from AT&T. There isn’t really a whole deal of difference between T-PA and T. Not from the standpoint of a low income amateur investor, not for a company like AT&T. This is probably not available through Robinhood, so this might be a chance to get your feet wet with Schwab.
BPOPN - With a company name like Popular, you know this is a safe investment. Basically you’re getting a low risk monthly income, some 6.15% annual. $27-ish a share. Cumulative, which is really the part we care about.
PFFA - This ETF tracks preferred stocks. $25/share. $0.15 dividend per month. :Like many ETFs, this follows the same trend as pretty much all the other ones do. For our purposes, we can look at this and say “Okay so we’re more or less guaranteed some kind of positive return over time."
ETI-P - This stock follows a second common trend, easy to see among energy stocks. It’s pretty similar to the overall market, but we we see less volatility with slightly more bullish momentum. Around $27/share, paying quarterly dividends of about $0.33.
We don’t worry about qualifying vs non-qualifying distributions. Honestly when you get to that point, you aren’t looking up weekly stock picks. For us poor people, it doesn’t affect our taxes when we file. Our tax credit from IRA contributions -does-, however. Awesome!
