WSF : Wells Fargo Preferred Redeemed – What to buy?

WSF : Wells Fargo Preferred Redeemed – What to buy?

wells fargo stock daily dividend investor blog passive income lifeI 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.

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