Shotzy.com

I have just purchased some shares of JSM. This is a preferred stock of the Sallie Mae corporation. I have owned shares of Sallie Mae, SLM, for a while. Sallie Mae is probably pretty familiar to many people, as they are the company that has handled many a college loan. SLM shot up about $15/share in early April as rumors were swirling about a buyout for a nice premium over the then stock price. That was very nice to see as it had been lagging a bit as there was some earlier investigation news swirling around SLM.

Well, JSM is the preferred stock version that pays around a 6% dividend. When SLM shot up, the preferred stock, JSM, shot down. Opening at $25 in Jan. ‘04, JSM has been lingering in the $21 range. At that discount, I figured purchasing it now is a good idea. It pays a flat $1.50 dividend. So, the dividend at the $25 price was 6%, but now since the price is around $21, it makes the dividend over 7%, the discount on the price makes it pretty attractive. I love to find high-dividend payers at a discounted price, and I think this fits. Even if JSN lingers at this price, the 7% quarterly dividend and potential upside make it look better than any money market or cds.