Dividends4Life: 3 Preferred Stocks Offering Safe, High Yields

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3 Preferred Stocks Offering Safe, High Yields

Posted by D4L | Thursday, September 10, 2015 | | 0 comments »

I am as big an advocate for preferred stocks as you will ever find. Once thought to be exotic securities that nobody understood, preferred stocks found favor when bond yields collapsed and fixed-income investors were forced to hunt down other opportunities. Because bond yields have been so low, it has made the low risk already associated with preferred stocks even lower. The primary risk with preferred stocks was always that some other investment would come along and challenge their 6-9% yields. That hasn’t been the case for a very long time.

The second area of risk is always related to individual issues. You want to stay away from companies where the risk of insolvency is somewhat elevated. While preferred stock is ahead of common stock in the capital stack, nobody wants to end up with either a suspended dividend or having to chase down their principal in bankruptcy. That’s not the case with these three selections, though: Capital One Financial (COF) Series P, Essex Property Trust (ESS) Series H and Public Storage (PSA) Series T.

Source: InvestorPlace

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