By Robert Hauver
Who says you can’t have it both ways? Preferred stocks, often pooh-poohed as being stodgy, with minimal price gains, are having a good year in 2014, with many issues outperforming the market via price gains alone.
If you want well-covered dividend income, but, also some potential for price gains, you ought to consider buying the newest preferred shares issued by CHS Inc., (CHSCM), a large cooperatively-owned Midwestern US company which deals in both Energy and Agriculture.
CHS is a bit different from most publicly traded companies – they don’t have common stock. Instead, they issue preferred shares, which trade on the NASDAQ.
Profile: CHS Inc. is a globally integrated Fortune 100 company supplying energy, crop nutrients, grain marketing services, animal feed, insurance, financial & risk management services and food & food ingredients. CHS employs over 10,000 people across North America and in 24 other countries around the globe.
CHS is committed to a cooperative business model, as reflected by its ownership, made up of 600,000 producers, the majority whom are throughout 1,100 member cooperatives and 77,000 are served through CHS local service centers. CHS also has 16,000 preferred stockholders. (CHS doesn’t have any common shares). The company is governed by a 17-member board of farmers and ranchers, who are elected by its cooperative-owners and producer-owners.
Dividends: We’ve had our sights on CHSCP for years, having listed it in our High Dividend Stocks By Sector Tables, (and all of the CHS preferred shares are now listed in the Consumer Staples section). The thing is, we’ve never been able to buy any of its shares near their $25 liquidation price, due to price gains on them…until now.
Last week, CHS issued its newest series of preferred shares –
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Disclaimer: This article was written for informational purposes only. Author not responsible for any errors or omissions.