Preferred Stocks to Buy: Ashford Hospitality Trust (AHT) Series D 8.45% Cumulative
Dividend Yield: 8.45%
Of all the preferred stocks out there, I’ve written most frequently about Ashford Hospitality Trust (AHT) Series D 8.45% preferred stock.
I love this hotel REIT and its stock for many reasons. Ashford Hospitality Trust is extremely well-managed, boasting management that has been in the hotel business for 24 years. Leadership has shown deftness and creativity with the company’s financing over the years.
During the financial crisis, when virtually every other hotel REIT cut both common and preferred dividends, Ashford never cut its preferred stock. It negotiated loan maturities out several years. It purchased interest rate derivatives called “flooridors” that generated additional income while the hotel business was in the toilet.
I’ve owned these shares for quite some time, and I suggest owning them for the long term. Ashford’s D shares trade just slightly over their $25 issuing price and yield a very attractive 8.45%.
(Note: Tickers for many preferred stocks vary based on the research or trading platform you are using.)