Readers of my column know how much I love preferred stocks. These stock-bond hybrids offer yields that wipe out anything that bonds can offer, even junk bonds. They are safer than junk bonds in most cases, with ratings that often exceed those of junk. They trade like bonds, in fairly tight ranges. Preferred stocks also offer security in being just behind bondholders should a company need to liquidate. The common stock dividend of a company must be cut first before cutting that of a preferred issue, and most preferred stock is cumulative, meaning the company must pay out all the dividends that have accrued since any suspension if it ever starts paying out again.
Investors should be careful about some very high-yielding preferred stocks, such as those in the energy sector. Those yields are crazy because the preferred stock price has fallen significantly, as the market doubts whether the underlying companies will remains solvent. However, the solvency of these three preferred stocks seems pretty secure in the near future: Barclays PLC (ADR)’s (NYSE:BCS) Preferred 8.125% Non-cumulative Series D, Arbor Realty Trust Inc’s (NYSE:ABR) 8.25% Series A Cumulative Redeemable and Ladenburg Thalman Financial Services’ (NYSE:LTS) Series A 8% Cumulative Preferred.
Source: InvestorPlace
Related Articles:
- 8 Dividend Stocks With A 15% Yield In 15 Years
- First Quarter 2014: Top And Bottom Performing Dividend Stocks
- All Investing Involves Risk
- 7 Dividend Stocks With Room To Increase Their Payout
- High-Quality, Low-Risk Dividend Stocks
Bite Into 3 Preferred Stocks Yielding 7% or More
Posted by D4L | Tuesday, March 31, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
Before the painful fourth-quarter stock market decline, steady dividend payers probably weren’t foremost in many investors’ minds. After all...

0 comments
Post a Comment
Post a Comment