Tag - preferred stock dividends

Advice to the Advisors

Sheaff Brock Institutional Group | "cheat sheet" on Preferred Stock

Preferred Stock 301+

(As an advisor, you’re in the know, but perhaps your clients can use a 101+ quick “cheat sheet” on Preferred Stock). Then, keep reading for some more advanced insights … By issuing preferred stock, a company combines the characteristics of both debt and equity. Advantages to the issuing company include: Issuing preferred stock as opposed to bonds keeps the company’s debt-to-equity ratio lower, a situation favored by investors. Ratings agencies tend to give a more favorable analysis for preferreds as [...]

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 [...]