What do you get when you have a stock with no Standard and Poor’s rating, and with a fixed dividend rate of 7.50%, you get, the American Finance Trust Preferred stock. American Finance Trust Inc., the company behind the stock, is a real estate investment trust, with the aim of obtaining and managing a large portfolio of commercial real estate properties in the US. With over 560 properties in its portfolio, American Finance Trust Inc. looks a profitable venture.
The preferred stock in question trades at $24.50, just below its par price, with a 7.65%, and 7.99% Current Yield, and Yield-to-Call respectively. The stock comes with dividends which are not eligible for both the stipulated 15-20% tax rate imposed on dividends and also dividend received deduction for corporate holders.