Preferred Dividend Rolls: A Viable Strategy for Corporate Money Managers?

This study provides extensive empirical analysis of the risk-return behavior of preferred dividend rollovers: the frequent buying and selling of preferred stocks (over short holding periods) for the purpose of capturing as many dividend payments as possible. The findings indicate that attractive yie...

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Bibliographic Details
Published in:Financial management 1980-07, Vol.9 (2), p.78-87
Main Authors: Joehnk, Michael D., Bowlin, Oswald D., Petty, J. William
Format: Article
Language:English
Subjects:
Capital losses
Dividends
Interest rates
Investment advisors
Investment return rates
Investment risk
Management
Mergers, Splits, and Preferred Dividend Investment
Money
Money management
Money market instruments
Money markets
Portfolio investments
Preferred dividend
Preferred stock
Rates of return
Repurchase agreements
Risk
Risk exposure
Roll over
Stock dividends
Stock exchanges
Stock prices
Stock sales
Strategy
Studies
Tax rates
Yield
Citations: Items that cite this one
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Summary:This study provides extensive empirical analysis of the risk-return behavior of preferred dividend rollovers: the frequent buying and selling of preferred stocks (over short holding periods) for the purpose of capturing as many dividend payments as possible. The findings indicate that attractive yields can be earned from this practice as long as the holding period is kept fairly short; risk, though, is found to be very high when returns are good.
ISSN:0046-3892
1755-053X
DOI:10.2307/3665172