I love WFC.PRL, own it and I'm adding.

It now yields 7.0%. The asymmetric risk/reward is unusually interesting. You own a preferred Wells security, senior to common, in perpetuity,— unless you choose to convert it yourself into 6.3814 shares of WFC common, or Wells exercises its right to force conversion once WFC exceeds the conversion trigger.

The risks? Credit risk and inflation. The security is non-cumulative, so missed dividends don't accrue. In a high-inflation world, a fixed 7% perpetual payment could become unattractive.

But in that case there's an interesting escape valve: If inflation causes nominal equity values — including WFC — to rise sufficiently, the conversion feature gives you a way to get out of the security. You can voluntarily convert into WFC common, sell the common, and effectively turn the perpetual preferred back into cash.

In other words, you're not necessarily trapped forever in a 7% nominal security if the nominal value of the underlying equity rises dramatically.

At a 7% current yield, 10 years of dividends returns you your investment. After that, you're still holding the preferred.

That's what makes this attractive to me: a very high current cash yield, seniority to common, no maturity date, a voluntary conversion right, and an issuer conversion that can only occur after a very substantial rise in WFC.