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Preferred Stocks and Preferred Income Funds Offer High Yields

A preferred stock trades like a stock but offers income like a bond. Preferreds are attractive because their yields are usually higher than corporate bonds of similar credit ratings. And preferred dividends are taxed at a lower rate than corporate bonds. Like bonds, preferred stocks usually trade in a narrow price range, but they can experience significant prices declines.

You can find information about specific preferred stocks at QuatumOnline, a free site. Or check with your broker.

In addition to individual preferred stocks, you can invest in convenient closed-end funds and exchange-traded fund that feature preferred stocks.

Here is a sample of 7 preferred income closed-end funds.

Preferred Income CEFs
Stock
Price Quote & Dividend
1-Yr Price Chart
BlackRock Credit Allocation Income Trust IV 
Flaherty & Crumrine Preferred Income Fund
Flaherty & Crumrine Preferred Income Opportunity Fund
John Hancock Preferred Income Fund
John Hancock Preferred Income Fund II
John Hancock Preferred Income Fund III
Nuveen Quality Preferred Income Fund 2
Price and dividend data from Quandl.


To inspect the performance of the Preferred Income CEFs portfolio, see the returns table and chart below. Portfolio values are computed using quarterly closes for from Quandl.

All 7 are included in the portfolio computations. The current value of the portfolio assumes that $1,428.57 was invested (total of $10,000) in each at its closing weekly price for the current date in 2008.


Preferred Income CEFs - Return Results
Portfolio:
Preferred Income CEFs
Start date:
Feb-23-2008
Start value:
$10,000
End date:
Feb-23-2018
End value:
$21,316
Number prices
121
Minimum value occurred on Feb-28-2009
$5,029
Maximum value occurred on Jun-30-2017
$23,188
Total gain or loss (Start date to End date)
113.16%
Annualized gain or loss (Start date to End date)
7.86%
Total dollar value on End date of a $10,000 purchase made on Start date
$21,316
Average percent return for all possible buy/sell combinations
60.63%
Number returns
7,260
Number profitable returns (Winners)
6,683
Percent profitable returns
92.05%
Number unprofitable returns (Losers)
577
Percent unprofitable returns
7.95%
Winners to losers ratio
11.58
Stock Return Calculator





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