The buyer's market for CDx3 Preferred Stocks, first described in last month's CDx3 Newsletter, continued throughout July.  The Last Month's CDx3 Investor Results section below shows you how the upward pressure on interest rates has pushed up the dividend rate being paid by the three most recently issued CDx3 Preferred Stocks.

Interested in building your own portfolio of CDx3 Preferred Stocks, but don't want to do any of the work?

Preferred Stock Investing teaches you everything you need to know, including all of the resources and web sties, to be a successful CDx3 Investor.  But let's face it; many people want the benefits (14.5% average effective annual return since January 2001 at "CD-like" risk) without doing it themselves.  That's what the CDx3 Notification Service is for.  Subscribers to the CDx3 Notification Service receive an email message whenever there is a buying or selling opportunity for CDx3 Preferred Stocks - weeks in advance, too.   The work is done for you.   Some subscribers to the CDx3 Notification Service have even chosen to forgo reading Preferred Stock Investing, as doing so is not required in order for subscribers to be successful CDx3 Investors.

As a subscriber to the CDx3 Notification Service, you receive all of the investment benefits that you have read about in past issues of the CDx3 Newsletter, without having to do the work yourself.  Click here to see examples of the email messages that subscribers to the CDx3 Notification Service receive and to learn more about the benefits of subscribing.  Plus, as announced in the Special Announcement section below, subscribers to the CDx3 Notification Service are now receiving their own monthly newsletter titled "CDx3 Research Notes."

The CDx3 Company Spotlight this month turns on to Regency Centers Corporation.  See if you have been shopping at a Regency shopping center by using the link provided in the CDx3 Company Spotlight section below.

The current "buyer's market" for CDx3 Preferred Stocks started in early June.  Because there is upward pressure on interest rates, the market prices of CDx3 Preferred Stocks are down, creating great buying opportunities for CDx3 Investors.  In the CDx3 Question Of The Month section, I answer the question: "how long will the current buyer's market last?"

In this month's FREE Special Offer section, I am including an offer to receive the signed edition of Preferred Stock Investing at the same price that is being charged for the un-signed edition being sold by retailers.  Plus, you may qualify to receive a $20 Shell Gift Card from me that you can use at any of the 13,000 U.S. Shell stations for gasoline and/or store merchandise.  Also in this month's FREE Special Offer section, new CDx3 Notification Service subscribers can receive a $30 Shell Gift Card.  See the Free Special Offer section below.

In last month's CDx3 Newsletter, I illustrated, using two real CDx3 Preferred Stocks, how and why the market price of CDx3 Preferred Stocks falls when there is upward pressure (real or imagined) on interest rates.  Lower market prices for CDx3 Preferred Stocks create some real bargains for buyers - a "buyer's market."

Dividend Rates On New CDx3 Preferred Stocks Go Up

When there is upward pressure on interest rates in the U.S. economy (buyer's market), there is also upward pressure on the dividend rate that is paid on new CDx3 Preferred Stocks.  So, CDx3 Investors can start earning improved dividend income as soon as they purchase a new, higher dividend rate CDx3 Preferred Stock.

Take a look at these two charts.  The chart on the left shows the recent upward pressure on interest rates in the U.S. economy.  Specifically, this chart plots the average interest rate paid by the 5-year Treasury Note during April, May and June 2007 (July data is not yet available).

Now look at the chart on the right.  This chart shows the declared dividend rate paid by the most recent CDx3 Preferred Stocks to be issue (May and June 2007).  Notice the upward trend of both charts.

Companies that issue CDx3 Preferred Stocks are well aware of the interest rate being paid by competing investments.  To continue attracting investors, the declared dividend rate for new CDx3 Preferred Stocks will frequently rise in a buyer's market.  So, CDx3 Investors are not only able to purchase CDx3 Preferred Stocks for some great prices, but the new CDx3 Preferred Stocks that they are buying tend to offer a higher declared dividend rate as well.

Preferred Stock Investing teaches you (1) the best time to buy, (2) the peak Target Sell Price that you should look to sell for and (3) the exact date that the Target Sell Price is most likely to occur - weeks in advance.

From KimK:  I've noticed several CDx3 Preferred Stocks with great prices.  How long is this "buyer's market" going to last?

The current upward pressure on interest rates is causing the great prices now available on CDx3 Preferred Stocks; so, the real question is "how long will this upward pressure on interest rates continue?"

But when will the upward pressure on interest rates in the U.S. economy cease?  Take a look at this chart.  This is the interest rate paid by the 5-year U.S. Treasury Note between January 1980 and March 2006 (almost three decades).

CDx3 Investors tend to sell their CDx3 Preferred Stocks within three years.  Do you see any three year period within which increasing interest rates were not followed by decreasing interest rates?

Neither do I.  They go up, they go down.

The direction of interest rates in the U.S. economy changes at a much faster rate than CDx3 Investors turn over their CDx3 Preferred Stocks.  This means that, over any three year period, CDx3 Investors will be presented with several opportunities to sell any given CDx3 Preferred Stock for a handsome capital gain (since the market price will go back up once interest rates change direction and come back down again).

And in the mean time, CDx3 Investors just keep cashing the great quarterly dividend checks from their Moody's "investment grade" CDx3 Preferred Stocks.  This is the heart of the CDx3 Income Engine; continuously generating dividend income, until a great selling opportunity presents itself.   Preferred Stock Investing teaches you when, the exact date and in advance, that selling opportunity is most likely to occur and the peak Target Sell Price to look for on that day.

Thanks to KimK for the great question.  You will receive a complementary copy of the CDx3 Special Report Dividend Accounting.