WFC.PR.L is trading at $1080, coupon is 7.5%, and current yield is 6.98 (after including the $6 accrued dividend). An excellent entry point to start accumulating.
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Be careful to check out the call provisions. It is probably callable at $1000 giving you an 8% loss if called before you collect interest payment. Preferred stocks are usually traded flat. Unlike bonds owner on x date collects full payment.
The call option is tied to the share price. This is a convertible issue. See below…
| WFC | |
|---|---|
| # of Shares | 6.3814 |
| Conversion Price | 156.71 |
| 130% of Conversion Price | 203.723 |
Given the current price, $83, assuming the share price increased at 10% annually it wil take another 10 years before WFC can force the conversion.