Bargain Preferreds For Durable Income; Yields +7%

Black Friday Sale 2025: Get 20% Off

“Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested.” – Peter Lynch.

Everyone grew up listening to the story about the Three Little Pigs. Neither the house of straws nor the one built with sticks stood a chance against the huffs and puffs of the big bad wolf. The one that offered resilient shelter was the one built with a solid foundation, with bricks, concrete, and sturdy beams.

At High Dividend Opportunities, we consider fixed income a beacon of stability amid market forces. As income investors, we will use the market jitters driven by uncertainties in the Fed’s rate policy to our advantage and pick up quality income at bargain prices. Let’s dive into our top picks.

This Sunday, members of High Dividend Opportunities will get exclusive access to our newest preferred stock and baby bond portfolio additions. Join us at 20% off with our Black Friday offer, and start building your income machine!

Pick 1: ATH Preferreds – Yields of Up To 7.2%

Athene is the largest seller of annuities in the United States, with $36 billion in sales during 2024, according to LIMRA. Athene is a wholly-owned subsidiary of Apollo Global Management (APO), one of the largest alternative asset managers in the world. 

Athene reported $17.5 billion in revenues during the first nine months of 2025, generating $3.3 billion in net income. The company reported $126 million in preferred stock dividend expenses, implying a massive coverage for its preferred obligations. Being a C-Corp, Athene’s preferred securities pay Qualified Dividends.

• 4.875% Fixed Rate, Non-Cumulative, Series D, Redeemable Perpetual Preferred (ATH-D) – Yield 7.2%

Athene offers a Series D preferred stock (ATH-D) that currently yields 7.2% and offers ~47% upside to par. Due to its low coupon, it is quite sensitive to interest rates and has sold off amid uncertainties about the future of interest rate cuts.

Pick 2: GMRE Preferreds – Yields of Up To 7.8%

Global Medical REIT Inc. (GMRE) is a net-lease medical REIT (Real Estate Investment Trust) that ended its third quarter with a portfolio of 191 buildings, leased at a 95.2% occupancy rate and a weighted-average lease term of 5.3 years.

The REIT recently appointed a new CEO, and reduced its common stock dividend by 28%, while reaffirming the full-year 2025 AFFO guidance of $0.89 - $0.93 per share. This adequately covers the new common dividend, but we are interested higher in the capital structure for a steadier income stream.

GMRE recently announced the issuance of 8% preferreds (GMRE-B) to raise $50 million, prompting a sell-off in the lower coupon GMRE-A. Remember, GMRE-A has been trading above par for over a year, and the prospects of a sister preferred at a higher coupon have depressed its price due to parity.

• 7.50% Series A, Cumulative Redeemable Perpetual Preferred Stock (GMRE.PR.A)

At current prices, GMRE-A offers a 7.8% yield and ~5% upside to par.

Conclusion

While markets chase AI-fueled euphoria at eye-watering valuations, the real economy continues to show cracks beneath the surface. At High Dividend Opportunities, we don’t gamble on hype cycles; we prioritize the safety and consistency of preferreds and baby bonds. 

As income investors, we focus on durable cash flows at discounted prices and build portfolios that can weather any storm. Because in uncertain markets, steady income is the ultimate power move.