What are Preferred Stocks?
Preferred stocks are a type of equity security but unlike common stocks, they carry a fixed dividend payment, can have a call date, and have a higher claim on assets in the event of a liquidation. Because preferred stocks have characteristics of both stocks and bonds they are sometimes referred to as a “hybrid” security. Preferred stocks offer yields that are, at times, higher than bonds and have historically been less volatile than stocks.
Should I own Preferred Stocks?
Preferred stocks may make sense as part of your overall portfolio, especially for clients who are looking for current income. Preferred stocks can provide diversification and enhanced income as a part of a well-balanced portfolio that includes stocks, bonds, and cash.
How we can help you
We can collaborate closely with you to understand your current and future income needs and to invest your portfolio to best meet those needs.