A Discounted Flyer With A 10.5% Yield, No K-1

These Preferred B shares are selling at a 36% discount. The company has struggled with heavy capex spending since its big 2018 acquisition, but has sufficient free cash flow to cover its preferred dividends. 2019 full-year EBITDA and free cash flow guidance point to potentially improved coverage for these preferred dividends.

Cincinatti Bell (CBB), like many other regional telecoms, has struggled over the past few years, losing landline customers and making some questionable acquisitions. These factors caused its price/share to drop from the high $20s in 2012, all the way to ~$4.36 in October 2019. As is often the case in an extreme price decline for a common stock, CBB's preferred shares, Cincinnati Bell Inc., 6 3/4% Dep Shares Cumulative Convertible Preferred Stock (CBB.PB), also have suffered a big decline in 2019, dropping ~33.5%.

Source: Seeking Alpha

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