Jack Adamo, editor of Insider Plus, often looks off-the-radar for under-followed investment opportunities in lesser-known areas of the income market. Here, he updates his view of several preferred issues.

I am now recommending the purchase of Annaly Capital Management, 6.50% Series G Fix/Float Cumulative Redeem Preferred (NLY-G), it is callable on 3/31/23.

If it is not called on that date, it will then pay a dividend at a floating rate dividend equal to three-month LIBOR plus a spread of 4.172% per annum. That would be a very good deal, but I expect it will be called.

Still, at  recent prices, the investment would have a 6.42% current yield, and a total compound annualized return of 5.4% per year if it is called on its redemption date. Buy Annaly 6.50% Series G Preferred up to $25.5O.

I also recommend Saul Centers, Inc. Series D Cumulative Preferred (BFS-D). We have owned this stock before and sold it at a very small loss when I got nervous about overall market conditions, especially those relating to brick & mortar retail sales.

While I think it's possible, in fact, likely the shares will fall in a coming bear market, I'm very satisfied with the results the company has achieved in a difficult retail environment. When the bear starts to growl in earnest, I will almost certainly recommend reinvesting dividends rather than selling the stock. Buy Saul Centers Series D Cumulative Preferred up to $25.50.

Lastly, I recommend buying Wells Fargo & Co., 7.50% Non-Cumulative Perpetual Convertible Cl A Preferred Stock, Series L (WFC-L). The shares are selling at a 40% premium to their original price, moreover, I dislike this company. However, Wells is too big to fail and is reasonably well capitalized these days.

The main good news here is that these shares are never redeemable. They are convertible into common stock, but the common would have to rise almost four-fold for the preferred to be converted. I don't see that happening in our lifetime, but if it did, we would make out well.

These shares will be volatile, but the virtual permanence of the dividends at a rate of 5.35% at the shares' current selling price, makes a good case for holding them. Buy Wells Fargo & Co., 7.50% Perpetual Convertible Preferred up to $1415.

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