Tag - preferred stock

Advice to the Advisors

Sheaff Brock Institutional Group | Dixie Cups' Growth Strategy | Investor Survival Tactic

Investment and Estate Planning Survivalist Tactics in a Dixie Cup

Before the Spanish flu hit, the company behind Dixie Cups was just another scrappy startup, Kevin Leland points out in fastcompany.com. Once the pandemic hit, because it was hoped disposable cups would help stop the spread of the disease, Dixie used survival tactics to eventually become a household name. The moral of this story, Leland believes, is this:  Timing is one of the crucial stars that must align for any start-up to succeed. But what if the timing isn’t right [...]

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

Preferred Stock as Portfolio Ballast | Sheaff Brock Institutional

Preferred Stock as Portfolio Ballast

“Corporate bonds and preferred stocks are two of the most common ways for a company to raise capital,” Ravi Srikant writes in Investopedia, and income-seeking investors, he says, can make good use of both. While bonds make regular interest payments, preferreds pay fixed dividends, Srikant explains, going on to note three qualities the two investment types share: Interest rate sensitivity—the security’s price falls when interest rates rise. Callability—the issuer has the right to call back the security and issue [...]