“I now have 17 CDx3 preferreds. I enjoy the revenue stream and have fun managing them (very little of that). Also your various communications are great and easy to understand even for me." - Bob V., CDx3 Notification Service subscriber

Quick Summary

In This Issue...

Last Month's CDx3 Investor Results

Special Announcement

CDx3 Company Spotlight

CDx3 Question Of The Month

FREE Special Offer

Next Month's Sneak Peek

   
 

The Third Edition of Preferred Stock Investing is now available!

The Third Edition of Preferred Stock Investing, published a few months ago, includes all of my latest research regarding the market price behavior of high quality preferred stocks. Five new chapters and 70 additional pages use real preferred stocks to show you how to screen, buy and sell the highest quality issues.

As of February 2010, Preferred Stock Investing became one of the highest reader-rated books in the United States.

Chapter 15 lists all qualifying preferred stocks that have been issued since January 2001 and shows you how you would have done by using the investing method described throughout the book for each one. And the book includes all of the websites and other resources that are used to implement the CDx3 Income Engine on your own.

The Third Edition of Preferred Stock Investing, the manuscript of which was reviewed by several dozen readers and subscribers before going to the publisher, is my most comprehensive work yet and it is now available at your favorite online retailers (see retailers | see reader reviews).


Just Posted On The Preferred Stock Investing Reader's Forum: A couple of weeks ago the Federal Reserve increased the "discount rate," one of the many interest rates that the Fed uses to manage various portions of the U.S. economy. In a February 23 post to the Preferred Stock Investing Reader's Forum (my "blog") titled "Discount Rate Change Unimportant For Preferred Stock Investors" I explain how the discount rate change was part of a three-part maneuver by the Fed to hold off inflationary pressure, hopefully until Congress can enact an effective jobs-stimulating program. (jump to Forum)

The Last Month's CDx3 Investor Results article identifies the sequence of events, unfolding right now,  that should produce an increase in preferred stock yields. Not that anyone is complaining about the current 7.7% annual dividend yield being paid by the highest quality preferred stocks ("CDx3 Preferred Stocks" - see sidebar). The wheels are already in motion to push up yields. (jump to article)

This month's Special Announcement article offers my gratitude to readers who have posted reviews of my book, Preferred Stock Investing, at Amazon.com. During February the book's Amazon rating jumped up into 5-star territory, a level reached by a miniscule percentage of Amazon's 5 million titles. Also, a few weeks ago, subscribers to the CDx3 Notification Service (my email alert service for preferred stock investors) got a new, updated website (see reader comments). In this month's Special Announcement article I describe some of the new site's features and provide you with a link to take a tour. The new subscriber's website is the most comprehensive resource for preferred stock investors anywhere by far. (jump to article)

In the CDx3 Company Spotlight article I introduce you to PNC Financial Services Group (PNC), the country's fifth largest financial institution and one of its oldest, having been established in 1852. PNC re-purchased its TARP preferred stocks from Treasury last month and played an interesting role during the rollout of the TARP program by using the TARP proceeds to acquire ailing National City Capital.  (jump to article)

The CDx3 Question of the Month is presented both here and on the Preferred Stock Investing Reader's Forum. If you visit the Forum you can test your knowledge by clicking on your answer to the question. You will receive an automatic email that provides you with the correct answer and my explanation. Or you can just read the answer in the below CDx3 Question of the Month article. I use this month's question to explain how preferred stock investors can avoid purchasing a "zombie" preferred stock. This is a preferred stock issue that, while continuing to provide ongoing dividend income, falls in price so much that the investor is stuck with it forever.  (jump to article)

Why wait until next month's CDx3 Newsletter to find out what is going on in the preferred stock marketplace? Throughout the month I post regular research articles on the Preferred Stock Investing Reader's Forum and make them available to you for free. In the Free Special Offer article below I provide you with a link that allows you to receive my posts, and the posts of other preferred stock investors, via an email message rather than having to visit the Forum to see what's new. Any time a new article is posted, you will receive a message in your email inbox automatically - free. (jump to article)

Coming Up For Preferred Stock Investors: The Next Month's Sneak Peek article at the bottom of this CDx3 Newsletter presents the latest unemployment data, just published on March 5, 2010, and provides a link to a summary of the new Congressional jobs bill that is intended to improve this sorry picture. Read how the jobs bill is directly linked to the interests of preferred stock investors. (jump to article)

I look forward to reporting back to you in next month's issue of the CDx3 Newsletter.

For New Readers...

Welcome to all of the new CDx3 Newsletter readers who signed up over the last month. This is your first issue of the CDx3 Newsletter, a free monthly newsletter devoted to the interests of CDx3 Preferred Stock investors.

To be sure that you continue to receive the CDx3 Newsletter each month, please remember to add the following email address to your email address book safe sender list:

CDx3NotificationService@us.emaildirect.com.

What Is A "CDx3 Preferred Stock?"

CDx3 Preferred Stocks are regular preferred stocks that are able to meet the ten selection criteria described in chapter 7 of my book, Preferred Stock Investing.

Applying the CDx3 Selection Criteria eliminates about 90% of the regular preferred stocks trading on today's stock market leaving just the highest quality issues.

For example, here are three of the ten CDx3 Selection Criteria:

1. be issued by a company with a perfect record of never having suspended a dividend on a preferred stock;

2. have the "cumulative" dividend requirement, which means that in the unlikely event that the issuing company misses a dividend payment to you (which I have never seen happen with a CDx3 Preferred Stock), they have to make it up to you later; they still owe you the money; and

3. be rated "investment grade" by Moody's Investors Service.

Having specific and consistently applied selection criteria takes the emotion out of your investing decisions and leaves you with the highest quality preferred stocks - "CDx3 Preferred Stocks."

Who Am I?

I am a preferred stock researcher and author of the book titled Preferred Stock Investing. I also publish two monthly newsletters that describe my ongoing preferred stock research. My academic background is in economics and statistics. I retired from my position as Managing Director at one of the world's largest management consulting firms in 2002 to focus on preferred stock research. I do not sell preferred stocks nor am I a stock broker or financial adviser. As a researcher, I research the market price behavior of the highest quality preferred stocks and write to you about my observations.

 

   
 

Loan Application Volume To Signal Change Of Preferred Stock Buying Strategy

Businesses Race Fed To Claim Huge Bank Cash Hoard; Preferred Prices Keep Going Up

Preferred stock investors looking to build their portfolios with the highest quality issues this year should be aware that a change of strategy is in the works. Fortunately, the mechanisms at work here are well known and measurable so there should be very little in the way of surprises for those paying attention.

Here's what is likely to happen this year, the reasons why and what to pay attention to in order to take advantage of it.

Likely To Happen This Year

The Federal Reserve is likely to increase the "cost of money" (specifically the "federal funds rate") later this year. Doing so is generally positive for new preferred stock purchases since an increase in the federal funds rate usually leads directly to an increase in the rates being offered by new corporate bonds and preferred stocks. Businesses issued a record volume of new bonds (debt) last year, well over $1 trillion worth. For many, issuing more debt becomes less attractive than issuing new preferred stocks (equity) as rates increase.

So preferred stock investors should be able to add new high quality preferred stocks to their portfolios resulting in higher dividend yields (currently averaging 7.7%) once the Fed starts increasing the federal funds rate. It would be surprising if market prices for existing issues did not continue to rise until then.

There are a wide variety of interest rates that are managed by the Fed in order to accomplish specific economic objectives, some of which are important to us while others are not. As explained in the February 23 article posted to my blog titled "Discount Rate Change Unimportant To Preferred Stock Investors," changing the "discount rate," which the Fed did during February, is very different than changing the "federal funds rate."

It is an increase in the federal funds rate that we are looking for.

The Reasons Why

Inflation. And not just a little bit.  Over the last couple of years, beginning with the TARP program in October 2008, a record amount of cash has been pushed into bank reserves (see Chart 1 from the St. Louis Fed). Like any other product, the value of money decreases as it becomes less rare. Think of what would happen if someone figured out how to turn beach sand into gold; the market price of gold would fall through the floor since an ounce of it would no longer be hard to come by.

The same is true for currency. A currency with less value means that it will take more of it to buy things...all things. So increasing the supply of money produces inflation and the near-vertical blue line on Chart 1 implies a very steep inflation rate is heading our way.

The good news is that the bulk of this excess cash is still sitting in bank reserves. But we all know that this condition is not going to last forever; sooner or later the banks are going to start lending it out. The genie will really be out of the bottle then. It is not realistic to think that banks will not make loans once businesses start applying for them again. Thankfully, for the moment, loan application volumes are still way down.

The Fed has to pull that excess cash back from bank reserves before loan applications pick up again, a maneuver that the Fed has already started. But doing so is a slow process. If banks start loaning that cash out before the Fed can soak up enough of it to prevent inflation, the Fed will have no choice but to start increasing the federal funds rate (which increases the cost to banks thus slowing the process down).

What To Pay Attention To

Loan application volumes. The cash hoard sitting in bank reserves is like a prize sitting at the finish line of a race. The race to the prize is between the Federal Reserve and businesses looking to borrow. If businesses recover enough to where they get to that cash (in the form of bank loans) before the Fed can soak it back out of the system, inflation will take off. The February 15 article posted to my blog titled "Two Metrics Now Key To Preferred Stock Investors" points out that loan application volumes and inflation are now the two things that preferred stock investors should be keeping an eye on.

Think of an increase in loan application volumes as an early warning system of coming inflation and, in turn, inflation as an early warning system for an increase in the federal funds rate. Once the Fed starts raising the federal funds rate look for new preferred stocks to be issued at very attractive dividend rates.

When

The Fed has a stated 2% maximum ceiling for inflation. Looking at Chart 2, the inflation rate for January 2010 was 2.63% as reported by the U.S. Bureau of Labor Statistics in mid-February. The bulk of this increase, however, was caused by a short-term spike in energy costs so we do not need to be on the look out for an increase in the federal funds rate just yet.

Most analysts believe that businesses will win the race to the cash hoard and the Fed will have to start increasing the federal funds rate later this year but no one knows for sure. That's why keeping an eye on the loan application volume has become important for preferred stock investors.

A consistent increase in loan applications will signal the likelihood that an increase in the federal funds rate is on the way. This should favor an increase in the number of new high quality preferred stock issues, rather than more debt in the form of bonds, at attractive dividend rates.

Until the Fed increases the federal funds rate, the marketplace for the highest quality preferred stocks is likely to continue doing what is has been doing for almost a year now - squeezing the crisis-caused excess yield out of the market through continued increasing market prices. This is a great time for buyers of high quality preferred stocks.

My book, Preferred Stock Investing (see retailers | see reader reviews), explains how to select, buy and sell the highest quality preferred stocks. All of the websites and other resources that you need to do so are included in the book plus a list of all CDx3 Preferred Stocks that have been issued since January 2001.

If you would rather someone else do the research, I offer the CDx3 Notification Service (see reader comments). Subscribers to the CDx3 Notification Service receive an email message when there are buying and selling opportunities coming up. We do the research and calculations, you make the decisions. To ride the recovery wave using the highest quality preferred stocks please consider subscribing to the CDx3 Notification Service today.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chart 1:

Adjusted U.S. Monetary Base

1910 - 2009

 

 

Source: St. Louis Federal Reserve

 

 

 

 


 

 

 

 

 

Chart 2:

U.S. Consumer Price Index

2007 - January 2010

 

 

 

 

 

 

   
 

Readers Move Preferred Stock Investing Into 5-Star Rating Territory

Readers Rate Preferred Stock Investing Among Highest In U.S.

A quick thank you to readers who have taken the time to post an Amazon review of my book, Preferred Stock Investing (see reader reviews). In February Preferred Stock Investing became one of the highest rated books in the United States, achieving 4.5 stars in Amazon's rating system and has been so rated by over two dozen readers. When authors set pen to paper they know in advance that not everyone is going to like their book.  A very small percentage of the 5 million book titles that Amazon sells are able to reach into 5-star territory and I am thrilled to announce that Preferred Stock Investing, Third Edition is now among them. Thank you.


Tour The New Subscriber Website: The Most Comprehensive Resource Available

Version 3.0 Aggregates Company, Preferred Stock And Marketplace Information In One Place

A few weeks ago subscriber's to the CDx3 Notification Service (my preferred stock research and email alert service) received the latest version of their exclusive website. Version 3.0 of the subscriber's website provides subscribers with the most comprehensive resource available for preferred stock investors.

The design of the new subscriber's website is a direct result of specific input from subscribers through our Continuous Improvement Program.

The subscriber's website is the vault within which I keep research information regarding selecting, buying and selling the highest quality preferred stocks ("CDx3 Preferred Stocks"), the companies that issue them and the marketplace that they trade within.

Once a subscriber signs onto the subscriber's website, the CDx3 Preferred Stock Market Dashboard is presented (the CDx3 Preferred Stock identities on the Dashboard image at right have been obscured to protect subscription values). The Dashboard provides these seven feature boxes, each of which provide their own focused information, both current and historical:

 

Trend Box: contains charts that illustrate current trends in the marketplace for the highest quality preferred stocks;

Buyer's Box: lists new, currently trading and former CDx3 Preferred Stocks;

Seller's Box: use this feature box to access the current and past CDx3 Seller's Calendars;

CDx3 Income Engine Box: presents key pages from Preferred Stock Investing regarding selecting, buying and selling the highest quality preferred stocks;

Reader's Forum Box: shows articles posted to the Preferred Stock Investing Reader's Forum in real-time;

Research Box: provides access to the current and past issues of our preferred stock research newsletters - CDx3 Research Notes and the CDx3 Newsletter. Also allows you to access today's real-time preferred stock news feed and the CDx3 Reading List; and

CDx3 Video Channel Box: presents CNBC video interviews with the CEO's and other leaders from the companies that issue CDx3 Preferred Stocks.

 

Take A Tour: The new website's Tutorial has several components to it, including a description of the site's features. I have made a copy of the website's feature tutorial available to you. Click on the below link to take a quick tour of the new subscriber's website Dashboard.

Click here to view the new subscriber website's feature Tutorial

Preferred stock research is very hard to come by. The service is intended for individual investors as well as groups (investing clubs, brokers, families or groups of friends) and all information is provided in plain English for non-experts. If you want to get serious about your preferred stock investments, maybe it's time for you to subscribe to the CDx3 Notification Service too (see reader comments).


Brokers And Investment Groups: New Meeting Materials Now Available

As the most comprehensive research service available for the highest quality preferred stocks, all of the large, and many smaller, brokerage firms subscribe to the CDx3 Notification Service.

My Preferred Stock Investing Group Materials are intended for brokers with a group of clients or self-directed investment groups that are interested in learning something about preferred stock investing.

The Preferred Stock Investing Group Materials include a slide show (27 slides, PowerPoint Show format) and an accompanying handout that provides my commentary for each slide. The handout is available in color and black and white (PDF format) for easy printing.

The materials include my tips regarding how to select, buy and sell the highest quality preferred stocks and summarize much of the research from my book, Preferred Stock Investing. Specifically, the materials are organized into three parts:

Part 1: Approach and Objectives To Preferred Stock Investing

Part 2: How and When To Buy and Sell Preferred Stocks

Part 3: Preferred Stock Investing Resources

To request the Preferred Stock Investing Group Materials just send a blank email message to:

InvestmentGroupMaterials@PreferredStockInvesting.com

You will receive an auto-reply email message with current download instructions.

 

The CDx3 Preferred Stock Marketplace Dashboard

We Do The Research, You Make The Decisions

 

 

Subscribe To The CDx3 Notification Service

 

 

 

 

 

 

 

 

 

   
 

Who Are These Companies That Issue CDx3 Preferred Stocks?

PNC Financial  Services Group, Inc. (NYSE: PNC)

You'll never guess who has the largest number of LEED-certified green buildings on Earth. PNC is a $25 billion regional bank with 66 such buildings. Pittsburgh National Corporation, as it was originally known, was established as the Pittsburgh Trust and Savings in 1852 and is still headquartered in Pittsburgh, Pennsylvania.

Based on deposits ($184 billion) and branches (2,550), PNC is the nation's fifth largest bank although its operations are concentrated primarily in the northeast and Florida.

Beyond its long history, one of the things that makes PNC an interesting company is its role in the 2008 TARP program. In the late-summer of 2008 PNC was looking to acquire National City Capital, another regional bank. While the price for an ailing National City was attractive, it was not clear to PNC where they were going to get the $7+ billion needed to make the deal work.

Just about then Treasury decided to launch the TARP program, ultimately injecting $700 billion into banks including $7.6 billion for PNC in exchange for custom-made preferred stock...bingo! At the time, it was not clear that PNC either needed or wanted the TARP cash but once they had it they used it to purchase National City (see article).

National City, you may recall, was among the country's top 10 sub-prime lenders but sold its sub-prime unit, First Franklin Financial, to Merrill Lynch in 2006 (which was subsequently acquired by Bank of America). Dumping its sub-prime holdings ultimately made National City more attractive to the much more conservative PNC.

Treasury officials applauded the use of TARP funds by healthier institutions to acquire failing institutions and publically supported PNC's move: "We have to be very careful about not discouraging prudent acquisitions because that can actually help us get through these troubled times that we're in right now'' said Neel Kashkari, Treasury's TARP point man at the time, at a Senate Banking Committee hearing.

In a confusing move, a few weeks later this same committee would lead an effort to limit the use of TARP funds for acquisitions of failing institutions by healthier ones.

PNC purchased its TARP preferred stock shares back from Treasury last month (see article). Since October 2009 PNC has also been the recipient of a string of upgrades from financial analysts (see upgrade/downgrade history).

Reader Note: The purpose of the CDx3 Company Spotlight article is to give you a sense of the types of companies that issue CDx3 Preferred Stocks. Companies that appear in the CDx3 Company Spotlight either currently, or in the past, have issued CDx3 Preferred Stocks. Since I am not familiar with your financial goals, resources or risk tolerance, my mention of these companies here should not be taken as a recommendation by me for you to buy, or not buy, securities issued by these companies. Companies can issue multiple series of preferred stocks, some of which may meet the CDx3 Selection Criteria while others do not.

 
 

PNC Financial Services Group, Inc.

Retail Banking Footprint

Source: PNC Corporate Profile, September 30, 2009

 

 
   
 

How do I avoid purchasing a preferred stock that I can never sell? - Preferred Stock Investing Reader's Forum.

I receive email from readers who, before they knew better, have owned certain preferred stock issues for many, many years that they never seem to be able to sell without taking a capital loss. By understanding one of the Three Rules of Market Price Predictability (Preferred Stock Investing, chapter 3), there is a simple way to never have any of these zombies stuck in your portfolio.

Historically, investment grade preferred stocks have a declared dividend rate between 6% and 9%.

Preferred stock investors who wish to sell their shares at some point in order to earn a capital gain have two opportunities to do so. First, since preferred stock market prices rise and fall over time, a preferred stock investor can sell on the open market for a capital gain if the market price rises enough to motivate him or her to do so.

Alternatively, the investor could hold onto their shares, continuing to collect the quarterly dividend income, until the issuing company "calls" the issue. Five years after the preferred stock is introduced the issuing company regains the right to "call" it which means they will buy your shares back from you at $25.00 per share (no more, no less). So if you originally purchased your shares for a market price less than $25 (which Preferred Stock Investing teaches you how to do) you are in for a capital gain in addition to the great dividend income that you have been earning in the meantime.

But what happens if you purchase a new preferred stock and the market price never seems to rise above your purchase price and the issuing company never shows any interest in calling the issue? You continue to receive the steady dividend income every quarter but your principal is tied up (unless you sell for a capital loss).

The market price never seems to exceed $25 per share and, since the dividend expense is so low, the issuing company is unlikely to ever call the issue (they will opt to just continue paying out the quarterly dividend). Buying very low dividend paying preferred stocks can put you into a situation where, even though you will continue receiving dividend income, your principal becomes locked up (without selling and taking a capital loss).

To avoid this scenario preferred stock investors should "stay off the bottom" (as Preferred Stock Investing puts it, page 193).

The question this month for preferred stock investors: How do I avoid purchasing a preferred stock that I can never sell? 

Your choices:

(A) Avoid purchasing a preferred stock with a declared dividend rate below 6.0%
(B) Avoid purchasing a preferred stock with a declared dividend rate below 6.5%
(C) Avoid purchasing a preferred stock with a declared dividend rate below 7.0%

The correct answer to this question is (B): avoid purchasing a preferred stock with a declared dividend rate below 6.5%.

Knowing the answer to this question requires an understanding of the Rule of Rate/Price Opposition (Preferred Stock Investing page 52), one of the Three Rules of Market Price Predictability.

This Rule says that the dividend rate offered by new preferred stock issues and the market prices of previously introduced, older issues will move in opposite directions. Rates up, prices down and vice versa. Keep that in mind as I walk you through this explanation.

When a new preferred stock is introduced it is priced at $25.00 per share. The declared dividend rate is set at a level where there is a market for it at $25. Let's say that the "going dividend rate" of a new CDx3 Preferred Stock is 6.0% today and you purchase it for $25.00 per share. Now a year goes by and rates have gone up to, say, 7.0%. If, a year from now, $25 gets me 7.0%, what do you think is going to happen to the market price of your 6.0% payer? It will be less than $25, of course. Rates up, prices down.

Since the historic bottom dividend rate for high quality preferred stocks is 6.0%, rates have nowhere to go but up in our example so, using the Rule of Rate/Price Opposition, the market price of your 6.0% payer has nowhere to go but down once rates bounce off the bottom.

Also, the issuing company of a 6.0% preferred stock is unlikely to ever call it (buy it back from you) since 6.0% is very cheap money to them.

To protect yourself from purchasing a preferred stock that you can never sell (without a capital loss), preferred stock investors should be very careful about purchasing new preferred stock issues that have a declared dividend rate less than 6.5%. If rates are falling, and you purchase a 6.5% payer, you still have some room to maneuver. As rates fall to 6.0% the market price of your 6.5% payer will go up, creating a selling opportunity for you. As rates then bounce off of 6.0% and head back up, you'll have some warning.

But if you purchase a 6.0% preferred stock you are very likely to be holding, and collecting its quarterly dividends, for a very long time. Stay off the bottom by drawing the line at 6.5%.


 You can submit your own preferred stock question. If your question is used as the CDx3 Question Of The Month you will receive a free copy of the CDx3 Special Report "Dividend Accounting."

Submit your question.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   
 

Preferred Stock Market Research Now Available All Month Long - Free

Automatic Email Delivery Of Preferred Stock Market Research Now Available

Readers do not have to wait until next month's issue of the CDx3 Newsletter to stay plugged into the market for high quality preferred stocks. Preferred stock research articles, marketplace observations, questions from readers, preferred stock news from the financial press and other information are posted to the Preferred Stock Investing Reader's Forum (my "blog") throughout the month.

To receive articles by email automatically without having to visit the Forum, click here

 A separate window from FeedBurner (a Google service) will open on your screen. Enter and verify the email address that you want articles from the Forum to be emailed to as instructed. And don't worry - you'll never receive any spam from me and your email address will not be shared.

By receiving the articles as I post them via email, you do not have to visit the Forum in order to stay plugged into my research regarding the marketplace for the highest quality preferred stocks.

You are also invited to visit the Forum and comment on my articles or the comments and questions posted by other preferred stock investors.

Please accept my invitation to receive articles by email and visit the Forum 

 
 

 

   
 

New Jobs Bill Positive For Preferred Stock Investors

Will It Be Enough For Federal Reserve To Start Raising Interest Rates?

It's starting to look like Congress is going to get serious about dealing with unemployment, even though the president's 2010/2011 budget proposal says that, if the policies described throughout the proposal are enacted our current 9.7% unemployment rate will only fall to 9.2% by the end of 2011 (Budget of the U.S. Government, Fiscal Year 2011, page 177).

The House passed their version of a jobs bill on March 4 (see article) that aims to boost employment by allowing employers who hire a new worker who has been out of work for at least 60 days to skip paying the 6.2% social security payroll tax for a year (not clear how this helps the social security funding mess).

This is important to preferred stock investors because the Federal Reserve cannot raise interest rates (namely, the federal funds rate) until they can do so without causing layoffs. Having an employment-stimulating fiscal policy from Congress is a must-have ingredient that must be in place before the Fed can start raising rates.

An increase in the federal funds rate will lead almost directly to an increase in the rates being offered by new corporate bonds and high quality preferred stocks (which are currently yielding an average of 7.7%).

The Senate has already passed a similar measure so expect this bill to be enacted within the next few weeks.

By the way, in last month's issue of the CDx3 Newsletter, I explained why those who have invested in preferred stocks issued by Real Estate Investment Trusts (REITs) may want to hold off filing their tax returns until mid-March. March 15 is the deadline for REITs to file their 1099-DIV forms with the IRS. Until that date the 1099-DIV forms that you receive via your broker are subject to change and are often revised in early March. If you have already filed your tax return, receiving a corrected 1099-DIV in early March means that you will probably have to file an amended return with the IRS (check with your tax advisor).

Since you are receiving this CDx3 Newsletter on March 5, 2010, the window for REITs to issue a corrected 1099-DIV for to you (via your broker) is closing. If you do not receive a corrected 1099-DIV within the next ten days you are good to go well in advance of next month's tax filing deadline.

I look forward to reporting back to you in next month's issue of the CDx3 Newsletter.

 

 

 

 

 

U.S. Unemployment Rate

Ending February 2010

(seasonally adjusted)

 

 

Cross-hatched areas represent recessions

Source: U.S. Bureau of Labor Statistics, March 5, 2010

 

 

 
   
 

Learn to screen, buy and sell the highest quality preferred stocks by purchasing the third edition of my  book, Preferred Stock Investing (see retailers). The book identifies the resources that you need to be a very successful CDx3 Investor completely on your own. If you would rather we do the research and calculations for you I offer the CDx3 Notification Service (see reader comments).

Chapter 15 of Preferred Stock Investing includes a list of all of the CDx3 Preferred Stocks issued since January 2001 and the investing results you would have achieved had you invested in them using the CDx3 Income Engine.

And readers also receive free periodic updates to the preferred stock lists in chapter 15 as long as the Third Edition of the book is in print.

Please take a look at www.PreferredStockInvesting.com. And if you know someone who might be interested in simple investing for non-experts please have them send an email message to:

CDx3Newsletter@PreferredStockInvesting.com

and they will automatically begin receiving this monthly CDx3 Newsletter next month (plus a CDx3 Special Report) - all FREE. 

Many Happy Returns,

Doug K. Le Du

 

 

 
   
 

Copyright (c) 2010 by Doug K. Le Du

CD Times 3, CDx3, CDx3 Income Engine, CDx3 Investor, CDx3 Portfolio, CDx3 Preferred Stock, CDx3 Perfect Market Index, CDx3 Bargain Table are trademarks of Doug K. Le Du.  All rights reserved.

Company logos are trademarks of the indicated companies. Service Marks (SM) are service marks of the indicated companies.

DISCLAIMER: The content of this CDx3 Newsletter is to be regarded as educational, rather than advisory. There can always be exceptions to trends and/or generalizations that may be discussed herein. Consider your financial resources, goals and risk tolerance before investing. You, and not Doug K. Le Du, are solely responsible for your own investment decisions.