4 Preferred Funds Paying Up to 7.2% – 2 Buys, 2 “Byes”
Brett Owens, Chief Investment StrategistUpdated: December 30, 2017
Investors looking for income with low risk tend to gravitate heavily toward bonds, but their efforts are often better spent in preferred stocks. These “hybrid” securities commonly pay 5% or 6% but gyrate far less than common stocks – certainly less than most shares that offer a similar amount of yield.
So, what exactly is a preferred stock?
Preferreds are simply another way companies raise capital. However, unlike common stock whose value fluctuates with the success (or lack thereof) of the company, preferred stock trades around a “par value” much like a bond, and they pay fixed dividends – often yielding far more than the common shares.… Read more