UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 922  
Subject: Re: opinions on preferred stocks for income? Date: 12/22/2011 3:21 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
ww4321,

I hold a number of preferred stocks. They come in a lot of varieties. In general preferreds are somewhere between bonds and stocks in terms of risk. Some are more like regular bonds; some more like stock. When you buy, you need to ensure you are likely to get paid for the risk you are taking.

If you want details on individual preferred stocks, give QuantumOnline.com a try. It's free and provides a lot of details about individual securities. Screening for the "best" preferreds can be a problem though. There aren't many tools to do that in part because the terms for a lot of preferreds are non-standard.

Alternately consider adding a preferred ETF like PFF to your holdings. Or you could use a closed end fund like Nuveen's JPS. Be careful of closed end funds though - they tend to be leveraged, which usually works in your favor but not always.

One more thing: Preferreds tend to be long-dated and are usually of fairly low credit quality. So you have to take some risks buying into these. However, preferreds tend to be more liquid than bonds, so you tend to take less of a hit on spreads if you feel you need to get out.

If you have specific questions about preferreds, ask away.

- Joel
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement