Preferred stocks are the unsung heroes of dividend yield. Preferreds only really started to get attention when bond yields cratered, sending dividend investors on the hunt for other sources of fixed income. And I have to admit, when I found preferred stocks, I fell in love.After all, preferred stocks have many of the advantages of bonds in that they trade in very tight range, they pay a regular dividend, and they are higher up in the capital stack than equity. In addition, if a company is forced to reduce dividends, it must first kill the dividend to the common stock before the preferred stock.
Now, onto those preferred stocks to buy: Of all the preferred stocks out there, I’ve written most frequently about Ashford Hospitality Trust (AHT) Series D 8.45% preferred stock. I love this hotel REIT and its stock. I also like both Public Storage (PSA) and its Series T preferred stock. Of course, if you’re worried about picking the right preferred stock, you can always go with an ETF, which offers diversification. There are a few preferred ETFs floating around, but one I favor is the PowerShares Preferred Portfolio (PGX).
Source: InvestorPlace
Related Articles:
- 9 Dividend Stocks Trading at a Double-Digit Discount
- 6 High-Dividend, Low P/E Value Stocks
- How Much Money Will You Need Before Retiring?
- The 2013 Dividend Achievers
- 9 Stocks That Have Paid Dividends For Over 100 Years
Super-Safe Preferred Stocks Providing Plentiful Payouts
Posted by D4L | Monday, February 24, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.