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The Preferred Stocks
An investor seeking higher overall yield from a portfolio of stocks and bonds will be particularly interested in Preferred Stocks. They pay a high dividend on a monthly, quarterly or annual basis similar to bonds but, as equities, Preferred Stocks participate more than bonds do in the potential capital appreciation associated with equities. Often of investment grade quality, Preferred Stocks exhibit more sensitivity to interest rates than do common stocks but less sensitivity than fixed-income securities. During times of volatility in the stock market, the high dividend yields of Preferred's tend to insulate them against sudden swings in price or market downturns. Preferred stock dividends vary significantly from one issue to another but generally yields are high enough to present investors with an attractive alternative to bonds. Therefore, investors who would like to increase or maintain yield, control exposure to stock market risk but still participate in equity growth opportunities should take a serious look at Preferred's. Preferred Securities Group, Inc. Member N.A.S.D., S.I.P.C. |