No. of Recommendations: 3
Yes, I've held mostly REIT preferreds for the past 12 years. Like bonds, income is the principal benefit of preferreds, but this comes with multiple risks, to include illliquidity, w-i-d-e bid-ask spreads, inflation, interest rate, redemption (at the worst time), perpetuity, dividend suspension, default, and getting-orphaned-and-ignored risks. This all means that if you're considering these unique securities, you need to do your homework, be sure you understand all risks and perhaps most importantly, NEVER, NEVER buy for the yield alone.

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