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
Related Articles:
- Finding Low Risk Dividend Stocks
- 10 Fun Facts That You Might Not Know About Microsoft
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
- 5 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
3 Preferred Stocks Offering Safe, High Yields
Posted by D4L | Thursday, September 10, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
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 ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.