Hi all. I wanted to get your thoughts about a possible perpetual preferred stock purchase. Triton International Limited (TRTN), the world's largest lessor of shipping containers, recently released its first preferred shares.
Below is the info I've found. Is this too good to be true?
"Triton International Limited 8.50% Series A Cumulative Redeemable Perpetual Preference Shares (TRTN-A) pays a fixed qualified dividend at a rate of 8.50%. The
new preferred stock has a 'B+' Standard & Poor's rating and is callable as of 03/15/2024. It cannot be converted to common shares. Currently, the new issue trades
above its par value at a price of $25.50 and has an 8.33% Current Yield and an 8.01% Yield-to-Call."
A few folks I know would like to invest a large sum of their portfolio into this, sighting the Rule of 72 and saying that they can double their investment in 8 yrs. I still think it's risky and they are better off investing in a Vanguard index fund like VTSAX or some other index fund that tracks the S&P.
An article I read said the following:
"As of Q4, TRTN had a total debt of $7.45B, ranking senior to the newly issued preferred stock. The rank of the new Series A preferred shares is junior to all outstanding debt and equal to the other preferred shares of the company. The Series A is currently the only preferred stock issued by TRTN."
https://seekingalpha.com/article/4250622-triton-international-limited-first-preferred-stock-ipo-now-trading-nyse Here is a link to a more favorable article explaining why this could be a good investment:
https://seekingalpha.com/article/4268352-world-turns-triton-internationals-containers-will-deliverWhat do you think?