Investment Grade Preferred Stocks Available Below $25

It's time for preferred stock buyers to start paying attention. In anticipation of a September 2015 Fed interest rate hike, the average market price of preferred stock shares fell to $25.03 at the end of June, a drop of $0.62 per share over the last three months. With lower prices come more sub-$25 candidates paying higher returns - the hallmark of a classic buyer's market. With the second quarter of 2015 behind us, the number of investment grade preferred stocks selling for a market price below $25 is now at 76, up from 39 candidates at the end of Q1.

As history suggested, June 2015 was the month that preferred stock sellers reached their tipping point and started selling their shares in anticipation of a September hike in the federal funds rate (see "Preferred Stock Buyers - History Suggests That June Could Bring Higher Returns For Lower Prices", June 1, 2015). The average market price of the highest quality preferred stocks (cumulative dividends, investment grade ratings, call-protected, etc.) fell $0.33 during June alone, delivering the highest returns for such securities that we have seen since last year to today's buyers.

Source: Seeking Alpha

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