Was pleasantly surprised that the Hyflux pref shares are currently going at $106.20 which translates to a yield of 6.2% if u choose to sell it tomorrow!

A quick recap on the emails in mid April that Hyflux was offering its preferance shares at 6% semi-annual payout (Apr and Oct). Hyflux will redeem back at $100 par value in 2018, if not it will "punish" itself by paying the shareholders 8% instead.

Now wait a minute, if I can sell it now in a matter of 1.5 mths and obtain a 6.2% yield, why should I wait for the full 6 to 12 mths to receive 3 to 6% dividend ?!  Is there a catch somewhere ?

The catch however is advantageous to the long term investor. This is what investors call it as "capital gains", where u gain $6.20 from a par value of $100. On top of ......