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
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 from Quandl. The 6 stocks included in the portfolio computations are: PFD, PFO, HPI, HPF, HPS and JPS. The current value of the portfolio assumes that $1,666.67 was invested (total of $10,000) in each at its closing quarterly price for the current date in 2007. BTZ was excluded from the portfolio computations because prices started after 2007.
Preferred Income CEFs - Return Results
Preferred Income CEFs
|Minimum value occurred on Mar-31-2009|
|Maximum value occurred on Jun-30-2017|
|Total gain or loss (Start date to End date)|
|Annualized gain or loss (Start date to End date)|
|Total dollar value on End date of a $10,000 purchase made on Start date|
|Average percent return for all possible buy/sell combinations|
|Number profitable returns (Winners)|
|Percent profitable returns|
|Number unprofitable returns (Losers)|
|Percent unprofitable returns|
|Winners to losers ratio|
|See Multiyear Chart of Monthly Portfolio Values|
Preferred/Convertible Bond Exchange-Traded Funds (ETFs)
Preferred Exchange-Traded Funds (ETFs)
Preferred Stocks Deliver High Yields