23. Calculate Yield to Call and How to buy Preferred Stock

[@Sintaxx2]

4:06 isn't that just sorting it alphabetically...?

[@joethompson6960]

Lmaooo very high tech stock choosing

[@RookieN08]

One question, why buy preferred stocks over bonds or common stocks? Theoretically speaking, dividend yield increases when stock price falls. But in the real market, the companies will simply cut out their dividends to maintain the same yield if it's a cumulative share. Even if it's non-cumulative, they ain't paying shit. So in reality, it isn't even profitable than bonds except during bullish market. But, what's the point of that? Common share are MUCH MORE PROFITABLE than preferred share during bullish market. Am I missing something here?

[@michelhansen9766]

Hi and thank you! I really appreciate the video, and I hope that somebody can help me out here. That would mean a lot to me :). Question: How is it profitable to trade preferred stock short term during low interest rates? Since he mentioned to stay away from preferred shares during low interest rates, but then is saying that short term investing here is something we really wanna look at? (16:43-16:55)

[@nishitkumar9319]

If a buy a cumulative preference share with a yearly dividend of say 1$, and if the company wasn't able to pay me the dividend for 5 years, then later when they do pay me the 6$ at the end of the 6th year, will they only pay me the outstanding dividends that have accumulated or will they also pay some interest on those accumulated dividends?

[@MrJabbothehut]

sorry this is late af and you probably ound the answer in 9 months, but yes it accumulates and they have to pay you the outstanding dividends. Non cumulative is where they dont.

[@gabakusa]

URL to find those prefer share?

[@triler525]

The formula: YTC = (C+(CP-P)/t)/((CP+P)/2) C= Annual coupon payment CP= Call price P= Market price t= Years until call date

[@billyhume2937]

Why do you divide it by the average between the two prices? Shouldn’t you divide it by what you are paying for it?

[@billyhume2937]

I that’s what the calculator does but I believe it is wrong. Correct me if I am wronf

[@shafaraday7916]

Hi Preston! I have watched all videos regarding valuation and all buffet's rules. I tried looking into securities last night and found that it is really hard to find one that fits all the criteria you discussed. Is there really a security that will pass all of the rules???/

[@thequantitychannel1299]

Wait for the bear market

[@ProChessPlayer]

Why would you follow Warren''s approach? Here is the thing for most of us with small cash trying to make big you have to take risk and go for risky stocks. That means wait for bear market and then go hardcore at it. That is the fastest way to make lots of cash. Yes you will lose money but you will also make tons. Warren approach is for people that wanna hold for ages, I am not saying he's approach is wrong but for starters they should go for growth portfolio.

[@kamalakannangunalan]

Sir, you are making the complex process very easy. is there any differences between your paid course and free courses on you tube

[@vimukthaariyasinghe8041]

Thanks for such a video..but when we buy at 69.50 and when the company decides to buy them at 50 we have a lose I think..please correct me if i am wrong

[@1899Capone]

Do you also have to subtract the inflation rate just as with bonds?

[@amazingwil]

I would.

[@zomarzoo8764]

What is yield to call exactly?? Acc to this example yield to call is 4.832.....but on what 50 or 69.50 i.e. if it's 50 I will get 50×4.832% and if it's 69.50 then I would get 69.50×4.832%. is it like that.??

[@trader96.]

69.50

[@diegoag85]

@preston this is really amazing! Content is so important for intermediate investors. Question: Because you're buying this stock looking for a mature date.. is this type of investment something that you would go and feed every year? F.ex. yr 1 you buy 1000 USD year 2 another 1000 USD and so on? Or this is more like an one time move? Sorry if I am not clear.. Thanks

[@afbarnes]

Working this out on my BA II Plus calculator, I am getting a yield to call of 4.694%.

[@buildersedge888]

Hi Preston. Came across your KZbin videos while searching for a yield to call calculator for preferred stocks. Really enjoyed your video and will check out your other lessons. Great job! I'm a big fan now.

[@Deepskies1]

got it, thanks a lot

[@fahadmatt7348]

Great

[@TaewooKim]

what's the difference between call date and maturity date?

[@Deepskies1]

Hi Preston, Is the company capable to change the call date? if it's not, what makes the call date different than maturity date?

[@thequantitychannel1299]

Call date-the earliest date when the company can repurchase shares and Maturity Date-when thr company is obliged to buy back the preffered shares

2.30

[@murugan5311]

Hi preston, thanks for all your videos, they are amazing with so much info. How to calculate intrinsic value of a stock which belongs to an Indian company, as the federal note value does not suit calculations for indian company stocks, i guess. Also, i joined your forum, but dont know where to post questions, kindly advice

[@Jamboreeni]

were you able to find anything?

[@gayathrisankar-sujii]

@@Jamboreeni @murugan5311 pls help with the same if you have found anything

[@Gurjars007]

Thanks you sir

[@peiruisong]

What is the difference between Call date and Mature date please? Thanks.

[@kassytan7797]

yep. i also cannot differentiate it. please help us. thanks. :)

[@RealMcWilliams]

Call date- the earliest date the company is allowed to buy back the stock Mature date- the date the preferred stock or bond will be bought back