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I'm curious if anyone weights their investments toward preferred stock and what your experiences are. If you track your performance, how have you done? How did you get your hands on these shares?
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I haven't used preferred's but they could be a good income producer or stablizier in a portfolio like a is since that's more or less what they basically are. Although I looked at one of AT&T's preferred and it's yielding about 20 basis points less than the stock itself. Granted that usually isn't the case and there's less volatility in the preferreds but you have to do your homework on them just like you would the stock.
As far as trading them, whatever broker you use should for stocks would have them. On Scottrade you'll find them under the "CD/Bond" section of their platform.The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
- Demosthenes -
The make things easy, Treat preferred stock as bonds. Preferred stock will not grow in vaule as much as a common share. They are designed for income.
Most preferred shares are issued at $25. some are issue at $15 and $10. The performance without reinvesting the diviend are flat. Very simular to bonds. The list to hang around their par vaule.Comment
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