WSF : Wells Fargo Preferred Redeemed – What to buy?
I logged into my Daily Dividend Investment account and found that much to my surprise Wells Fargo has redeemed all of the outstanding shares of the Wells Fargo 7% Capital Preferred (Ticker: WSF).
These shares have been redeemable since August of 2006, so the redemption shouldn’t come as a surprise. Since I was able to pick these shares up back in November, 2009 at $23.85 that will net me another $1.15/share profit on top of the 7% quarterly distribution along the way. No complaints based on my positive return of capital, but now I’m asking myself what can I buy now that will give me a similar return with a similar risk profile?
The U.S. stock market remains strong, so I’m going to wait for a pull-back, ala “Sell in May & Go Away” before putting these funds back to work. In the mean time my cashflow on this money drops from 7% to less than .2% while the money sits in my money market fund.