So long NuStar preferred

I originally bought Nu Star preferred’s in 2017 right after the issue came out. It pretty much traded under water all its life, but paid its dividends. Now they are bought by Sunoco, and the preferred’s will be redeemed. Recently the preferred’s dividend was reset to floating rate and the price moved above $25, and inching closer to $26. In any case, it will be redeemed and I am planning to hold on and take the final dividend and the redemption price.

During this period it paid 7.625% (the dividend yield was much higher because the unit was trading around $20 :slight_smile: ), which is better than the ZIRP you were getting elsewhere, but a better strategy is to buy dividend grower.