Wow! What a month!
In
last month's CDx3
Newsletter, I gave you a heads-up that March was going to be a
whopper for CDx3 Investors. Wait until you see the results.
Big news - the 2006 CDx3
investment results are in. The CDx3 Special Announcement
section below shows you how CDx3 Investors did last year.
Here are the updated annual CDx3 investment results, compared to
average bank CD rates ($10,000; 24-months), since January 2001:
* 5 CDx3 Preferred Stocks from
2005 and 13 from 2006 have yet to be sold. The above chart
will, therefore, be updated in the future.
Through down years (2000 -
mid-2003) and up years (mid-2003 - 2006), the CDx3 Income Engine
just kept delivering solid results at "CD-like" risk.
Preferred Stock Investing,
available at
http://www.PreferredStockInvesting.com, explains how you too
can get these kinds of results, in plain English for
non-experts.
In
last month's CDx3
Newsletter, I also asked you to check out the market price of a CDx3
Preferred Stock from Duke Realty Corporation, just for fun, on
Tuesday, March 13.
See the CDx3 Company Spotlight section below to see how it went
for CDx3 Investors.
The CDx3 Question Of The Month
explains why CDx3 Investors seem to sell several CDx3 Preferred
Stocks in some months (such as the examples seen in the March
2007 results below), and fewer in other months.
And if you haven't gotten your
FREE copy of the CDx3 Special Report Calculating Your Rate of
Return, check out the Free Special Offer section below.
There is also a
companion Excel spreadsheet now available, also for free, on
the
Preferred Stock Investing Google Group web site that
calculates the effective annual rate of return for preferred
stock investments for you.
I close this month's CDx3
Newsletter with something entirely new.
Ever wish you could trade in a
low-rate CD for one that pays a higher interest rate? Rather than give
you a CDx3 Preferred Stock to watch this month, there is an
opportunity that Preferred Stock
Investing refers to as "upgrading" that is going
to present itself on Friday, April 6. See the Next
Month's Sneak Peak section at the end of this CDx3 Newsletter.
|
 |
|
The
quarterly Target Sell Date for the
following CDx3 Preferred Stocks arrived last month.
Duke Realty is featured in this month's CDx3 Company Spotlight below.
Let Preferred Stock
Investing teach you how to get
these kind of results at "CD-like" risk:
Note 1: As determined several
weeks in advance by the CDx3 Income Engine
investment method described in
Preferred Stock Investing.
Note 2: What is the formula
for calculating the effective annual rate of return
for a CDx3 Preferred Stock? See Free Offer below.
Note 3: Closest maturity to
Days Held; $10,000 CD. Multi-institution average
annual percentage yield at IPO date. Source:
bankrate.com
|
 |
|
 The CDx3 Preferred Stock Investing results for 2006 are in!!
Want to see how you would have done if you were using the CDx3 Income Engine, as
described in Preferred Stock Investing,
throughout all of last year?
When I wrote Preferred Stock Investing,
I felt it was important to show
readers how the CDx3 Income Engine performs, not just on a handful of carefully
selected examples that happen to fit, but on all CDx3 Preferred Stocks that were
issued during the timeframe used by the book - since January 2001.
In other words, I did not want to ask my readers to "take my word for it"
like so many other investment books.
So, after the first eight chapters of Preferred
Stock Investing explain how and why the CDx3 Income Engine works,
Chapter 9 is titled "Results- How You Would Have Done" and presents the results
of running every CDx3 Preferred Stock issued since January 2001 through the CDx3
Income Engine.
2006 Summary: Preferred stocks that qualify for the CDx3 Selection
Criteria, "CDx3 Preferred Stocks," usually come out at a rate of about one or
two per month. During 2006, there were 25 CDx3 Preferred Stocks issued - a
solid year, and about what one would expect.
Of those 25, you would have already sold 12 since the market price reached, or
exceeded, the Target Sell Price (and on the exact date that the CDx3 Income
Engine told you to look for it). Of those sold, the average effective
annual return was
14.6%. That's
3.9
times better than the average 2006 bank CD was paying (multi-institution
average, 24-months, $10,000, source: bankrate.com).
Historically, the CDx3 Income Engine generates effective annual returns in the
12% - 17% range, with a six year average of 14.5%. 2006, at 14.6%, was
right on target; another solid year for CDx3 Investors - and at "CD-like" risk
and no more time that it takes to read a bank statement.
|
 |
|
Who are
these companies that issue CDx3 Preferred
Stocks?
At the
end of last month's CDx3 Newsletter, I
highlighted a CDx3 Preferred Stock from
Duke Realty Corporation.
 Duke
Realty (NYSE: DRE), headquartered in
Indianapolis, Indiana, is a $6 billion
real estate investment trust founded in
1972. Duke engages in the
ownership, construction, development,
leasing, and management of office,
industrial, retail, and healthcare
properties in the Midwest and Southeast
United States, including 112.9 million
square feet of office and industrial
space and 6,500 acres of land.
In June
2006, Duke introduced its
Series N CDx3 Preferred Stock (trading
symbol: DRE-N), paying an annual
dividend rate of 7.25%.
At the
time, 9-month CDs from your local bank
were paying an annual interest rate of
about 4.5%. CDx3 Investors,
however, chose to purchase DRE-N for
about $25 per share.
The
CDx3 Income Engine, described in
Preferred
Stock Investing,
set the Target Sell Price for DRE-N
at $25.91.
This is the market price that CDx3
Investors would be looking to sell DRE-N for
on March
13, 2007 (the
Target Sell Date) - about 9
months later.
|
On March
13, 2007, the market price of DRE-N was
$26.41.
As with
96% of the CDx3 Preferred Stocks issued
since January 2001, the market price of DRE-N
exceeded the price
that CDx3 Investors were looking for
on the exact date that the CDx3
Income Engine said that it should.
All you have to do is, on that date,
look up the market price. And
Preferred
Stock Investing teaches
you just how to do it.
Actual Results: CDx3
Investors who sold DRE-N on
March 13 owned it
for a total of 270
days (about 9 months) and earned $1.41
per share in capital gain income
(profit) plus $0.98
per share in dividend income
that Duke
had
paid since June 2006, for a total
income of $2.39
per share
(that CD would have generated about
$0.84 on the same $25 investment).
The effective annual return realized by
CDx3 Investors for this 9-month
investment was 13.23%,
which is
triple
(2.94x)
what that 9-month CD would have paid
you.
|
 |
 From
Kathy at MSN:
Looking over the CDx3
Newsletters from the past few months, I noticed that
there seems to be lots of sales of CDx3 Preferred
Stocks in some months, but fewer sales in other
months. Why do CDx3
Investors seem to sell lots of CDx3 Preferred Stocks
some months, but only one or two in other months?
By definition, CDx3
Preferred Stocks pay you a dividend every three
months (every quarter). But not all "quarters"
are created equal. Some companies will choose
to pay you your dividends on the calendar quarter;
that is, you receive your dividend payments in
March, June, September and December. Other
companies, however, may choose to use a different
"quarter," such as paying you in February, May,
August and November.
Whatever the case, you
get paid every three months by the issuing company
of your CDx3 Preferred Stock. That is, there
are three possible "dividend quarters" that
companies follow when paying dividends on CDx3
Preferred Stocks. So, you will get paid
following one of the following three quarterly
schedules:
-
January,
April, July, October (23%); or
-
February,
May, August, November (18%); or
-
March,
June, September, December (59%, the
calendar quarter).
 Chapter
10 of Preferred Stock
Investing presents a table that shows
how popular each dividend quarter schedule is with
the companies that issue CDx3 Preferred Stocks.
The dividend quarter that uses the calendar quarter
(March, June, September, December) is, by far, the
most popular.
Now, back to
Kathy's question: why does there seem to be more
selling activity by CDx3 Investors in some months
than other months?
As explained in
Preferred Stock
Investing, CDx3 Investors sell their
CDx3 Preferred Stocks under specific conditions and
on a schedule that is linked to the dividend
quarter.
Since most (59%) CDx3
Preferred Stocks use the March, June, September,
December dividend quarter, it is during these months
that the most selling opportunities will present
themselves to CDx3 Investors.
Consequently, when I
send you the April, July, October and
January CDx3 Newsletters, the selling activity
that those newsletters documents from March, June,
September and December, respectively, is going to be
more robust than that of the other months.
Thanks to Kathy at MSN for the great
question. You will receive a
complementary copy of the CDx3 Special
Report Dividend Accounting.
|
 |
As a
recipient of this monthly CDx3 Newsletter,
you are entitled to a FREE copy of the CDx3
Special Report titled "Calculating Your
Rate Of Return."
This CDx3 Special Report shows you how to
correctly calculate your effective annual
rate of return on this type of investment,
complete with the Microsoft Excel cell
functions -
FREE.
To download your free copy, just click on
the following email address (or just send an
email message to):
CDx3MonthlyResults@PreferredStockInvesting.com.
No need to type anything in the body of the
message, just click the Send button.
You will receive an auto-reply email message
with current download instructions for your free
CDx3 Special Report.
To see the entire library of useful and
educational CDx3 Special Reports, including
three sample pages from each one,
click here.
|
 |
Usually in this space, I give you a
CDx3 Preferred Stock that is going
to generate huge returns for CDx3
Investors during the month.
Then I report back to you in next
month's CDx3 Newsletter with the
actual results.
Next month, however, I want to take
the opportunity to teach you
something new about preferred stock
investing.
Doesn't it just fry your bacon when
you buy a CD at your local bank that
earns, say, 4% interest, only to see
an ad in the newspaper a few days
later saying that your bank has just
announced a CD special for 6%?
Wouldn't it be great if you could
call up your bank and trade in your
4%er for the new 6%er, without
penalty?
Well,
Preferred Stock Investing
teaches CDx3 Investors how to do
just that with CDx3 Preferred
Stocks. It's called
"upgrading." Not only is there
no penalty, but CDx3 Investors actually make money on the trade-in!
Let's see a bank CD do that.
 Chapter
8 of
Preferred Stock Investing
is titled "Knowing When To
Upgrade"
and in next month's CDx3 Newsletter,
I'm going to show you how it's done,
using a real example.
And
even better - as you're about to see
- the CDx3 Income Engine allows you
to determine not only which of your
CDx3 Preferred Stock you should
consider upgrading, but the exact
date you're going to do it on - way
in advance.
Specifically, in next month's CDx3
Newsletter, I will show you how CDx3
Investors will upgrade one CDx3
Preferred Stock that pays a
relatively low dividend rate (6.5%),
to a newer CDx3 Preferred Stock that
pays a higher dividend rate (7.0%) -
and have money left over when
they're done.
On
Friday, April 6,
2007,
CDx3 Investors will have an
opportunity to upgrade a CDx3
Preferred Stock
from
US Bankcorp (symbol:
USB-I) that pays a 6.5%
dividend,
to
a new CDx3 Preferred Stock from
Hospitality Properties (symbol:
HPT-C) that pays a 7.0%
dividend. They will know when
to do so way in advance (as I'm
demonstrating here), it will take
less than 60 seconds of their time,
and they will have money left over
when they're done.
And
the best part is, they'll start
earning an additional 1/2% on their
money!
How
can you check the market price of these
two CDx3 Preferred Stocks on
Friday, April 6? Just
click on their respective trading
symbols shown above.
In
the May 2007 CDx3 Newsletter, I'll
report back to you on how much money
CDx3 Investor's have left over if
they do this upgrade.
Remember, I'm not a stock broker;
I'm not trying to sell preferred
stocks to you; I'm not a
financial advisor; and I don't sell
investment advice. I'm an
investment researcher with a data
analysis and statistics
background who has developed a
simple way to earn a respectable
return at "CD-like" risk. And I've
written it down in
Preferred Stock Investing.
I'm hopeful that you find these
monthly CDx3
Newsletters interesting, and
will consider learning more by
purchasing my eBook, Preferred
Stock Investing.
|
Please
take a look at
www.PreferredStockInvesting.com. Preferred
Stock Investing
is available for download right now - no
shipping costs, no handling fees, no
sales tax, no delays; and don't forget
about my
FREE SPECIAL OFFER.
Know
someone who might be interested in simple,
low-risk investing for non-investment
experts? Have them send an email
message to
CDx3MonthlyResults@PreferredStockInvesting.com and
they will automatically
begin receiving this monthly CDx3
Newsletter
next month (plus a
CDx3 Special Report) - all FREE.
Then they can make up their own mind.
Many Happy Returns,
Doug K. Le Du
P.S.: If you do not want to receive news
regarding Preferred Stock
Investing, just
send an email message to
OptOut@PreferredStockInvesting.com
and you will be automatically removed
from my address list. Best wishes to
you. |
|
