Preferred stocks to buy
Preferred stocks are a stock-bond hybrid. Companies issue preferred stock in order to raise capital without diluting existing shareholders, and without placing more debt onto the company to compete with other bondholders.
Preferred stocks usually has no voting rights, but in exchange for this, and for having the privilege of being behind bondholders but ahead of common stockholders to recover their investment in case of liquidation, preferred holders earn very generous dividends.
Preferred Stocks That Pay High Dividends - ditycapylal.web.fc2.com
They usually run from 5. These dividends have another advantage.
The 10 Highest Yielding Preferred Stocks - Slide 1 of 10
They cannot be cut or suspended unless the common stock dividends are cut first. They tend to trade in fairly tight ranges, so they behave a bit more like bonds in that regard.
Personally, I think that there is so little additional risk with preferred stocks compared to bonds, and pay so much more in dividends that they are hands-down a better investment for those looking for yield — i.
Now, you can invest in individual preferred stocks, and there are plenty of them to choose from.
Almost all are going to provide a high degree of safety. My preferred stocks to buy ETF for preferred stocks is PFF. Its yield is 6.
4 Good Preferred Stocks Yielding 6% or More
PFF has holdings so how bollinger bands are calculated have exceptional diversification. So I would buy PFF, sit back, collect the yield, and mine the fund fact sheet to find individual issues you might want to investigate further.
Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance. He is the Manager of the forthcoming Liberty Portfolio.
He can be reached at TheLibertyPortfolio gmail. Article printed from InvestorPlace Media, http: Financial Market Data powered by FinancialContent Services, Inc.
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