No options trades for me this week but I am planning to add some JPS two Monday’s from now with the proceeds from last month’s options contracts that are expiring worthless.
music selection: “Youth Gone Wild” — Skid Row
The fund in question is Nuveen Quality Preferred Income Fund 2 (NYSE: JPS). This is a closed end fund of preferred securities (80%) and some debt securities. It provides good diversification and stable income in exchange for low growth potential. Current yield is 8.06% and is best held in tax advantaged accounts. Payments are made monthly allowing for greater compounding and easier budgeting if you are using the distribution to pay current bills.
The great thing about Closed End Funds is they sometimes trade for a discount to their Net Asset Value (NAV). Today, we can scoop up shares of JPS for a bargain price. Shares are trading for 11.11% below NAV. It’s kind of like being able to by a dollar for about 89 cents. This is a delicious snack.
ACTION TO TAKE: Buy JPS for up to 10% discount to NAV (currently 8.75 per share). Today’s closing price was 8.64.
More information about JPS is available from Nuveen on the JPS data page.
Devour your prey raptors!