PSE Preferred Stocks

Are you an income investor? Consider including preferred stocks in your portfolio!

Investopedia defines a preferred stock as “a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares generally have a dividend that must be paid out before dividends to common shareholders, and the shares usually do not carry voting rights. Preferred stock combines features of debt, in that it pays fixed dividends, and equity, in that it has the potential to appreciate in price. The details of each preferred stock depend on the issue.”

With San Miguel Corporation (SMC) set to raise P33.5B from its Series 2 Preferred Shares offering, its a good time to look at the preferred stocks traded on the Philippine Stock Exchange (PSE). The below data are compiled from the offering prospectuses and PSE and excludes inactive stocks.

Symbol Issue Date Offer Price 08/20/15 Price Coupon Months Payable Dividend Yield Optional Redemption Optional Redemption Date
ACPB1 5 ? ? 525 ? ? ? ? ?
ACPB2 11/5/2014 500 530 5.58% 2/5/8/11 5.26% 5TH & 10TH YR 11/2019
FGENG 5/18/2012 100 116 7.78% 1/7 6.71% 10TH YR 05/2022
GLOPP 8/22/2014 500 520 5.20% 2/8 5.00% 7TH YR 08/2021
LRP 12/20/2013 1 1.09 8.50% SEMI 7.80% 5TH YR 12/2018
MWP 1 12/3/2014 100 108 7.03% 3/6/9/12 6.50% 5TH YR 12/2019
PFP2 1 3/12/2015 1000 1,018 5.66% 3/6/9/12 5.56% 3RD YR 03/2018
PRF2A 1 11/3/2014 1000 1,046 6.30% 2/5/8/11 6.02% 5TH YR 11/2019
PRF2B 1 11/3/2014 1000 1,085 6.86% 2/5/8/11 6.32% 7TH YR 11/2021
SMC2A 9/28/2012 75 75.4 7.50% 3/6/9/12 7.46% 3RD YR 09/2015
SMC2B 9/28/2012 75 76 7.63% 3/6/9/12 7.52% 5TH YR 09/2017
SMC2C 9/28/2012 75 80 8.00% 3/6/9/12 7.50% 7TH YR 09/2019
SMC2D 9/21/2015 75 75 5.94% 3/6/9/12 5.94% 3RD YR 09/2018
SMC2E 9/21/2015 75 75 6.33% 3/6/9/12 6.33% 5TH YR 09/2020
SMC2F 9/21/2015 75 75 6.81% 3/6/9/12 6.81% 7TH YR 09/2022

Dividend yield is calculated by annual dividend / price and is gross of 10% Philippine income tax on dividends.

Of course investing in preferred stocks is more than simply looking at the yields. One has to look at the Company and consider the risks involved as with any other investments. The investor should also decide if the investment matches his/her goals and time horizon.

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