Thursday, February 21, 2013

Proceeds of Heinz Sale.

Thank you Mr. Buffett for forcing my hand to sell out of H.J. Heinz (HNZ)

Looking around a lot of the stock market I was unsure about investing in food production stocks. A few weeks ago there was a rumour that Mr. Buffett was looking at Kraft Foods (KFT) that I am sure was only a rumour and the purchase of HNZ was the real food company purchase. Anyway Kraft looks expensive to me. I have some concerns with the whole food production sector in the wake of the Heinz purchase. So I stepped aside from Kraft Foods. For the time being.

A nice little area though for me was Barclays Preferred Stock ETF.

As you may know I love those ETF's that return a monthly dividend, and the Barclay US Preferred  Stock ETF is currently just over $40 and paying an annualized rate of about 5% yield.

No too shabby, I estimate a monthly return of about 17 cents per share in dividends.

The dividends do vary a little from month to month but I like the return so opted to buy into Barclays US Preferred Stick ETF (PFF) for the shortish term, not less than a year. Then to reassess the situation in February 2014.

The sale of HNZ was forced by the purchase of HNZ by a consortium led by Warren Buffett' Berkshiew Hathaway and the Brazilian owners of the Burger King chain announced last week.

I do now own PFF stock, this is not an endorsement of that stock, I am not a financial advisor and you should examine the purchase of any stock very carefully to assure yourself of the risks and possible rewards. If in doubt consult a tax professional or your accountant before making adjustments to your stock portfolio.

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