Monthly Archives - October 2017

Advice to the Advisors

Sheaff Brock Institutional Group | Investment portfolios | Preferred Income Portfolio | portfolio workhorse

Harnessing Twin Risks can Turn Preferreds into Portfolio Workhorses

In any income portfolio, two “bug-a-boos” are credit risk and call risk. When it comes to preferred stocks, interest-yield-hungry investors tend to over-emphasize the former, even as they devote less than due attention to the latter, observes Sheaff Brock Senior Portfolio Manager JR Humphreys. “Investors in search of solid income from their portfolios often select preferred stocks rather than Treasury securities or ETFs based on Treasury bonds. One reason behind this decision is that preferred stocks generally pay dividends of [...]

Advice to the Advisors

Sheaff Brock | Preferred Stock portfolio strategy | cat between dogs

There’s a Method to Dealing with Preferreds

Think of preferred stock as “middlers,” Sheaff Brock Senior Portfolio Manager JR Humphreys advises. Preferred stocks are income enhancers, yes, but they may have a higher return potential than bonds. At the same time, preferreds don’t act like other stocks, and, in fact, can carry less risk than their common cousins. In speaking with our Institutional editor, Humphreys outlined the five basic considerations he uses in the selection process when building a preferred portfolio: Liquidity—Many preferred issues are small, making [...]