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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
Price Quote & Dividend
1-Year 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 Yahoo! Finance. Click small charts (sparklines) to expand. * Uses 10 years or all years of dividends and prices, whichever is less.

To inspect the performance of the Preferred Income CEFs portfolio, see the returns table and chart below. Portfolio values are computed using weekly closes for stocks from Yahoo! Finance.

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 stock at its closing weekly price for the current date in 2007. BTZ was excluded from the portfolio computations because of insufficient price data.

Preferred Income CEFs - Return Results
Preferred Income CEFs
Start date:
Start value:
End date:
End value:
Number prices
Minimum value occurred on Oct-06-2008
Maximum value occurred on Apr-24-2017
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 returns
Number profitable returns (Winners)
Percent profitable returns
Number unprofitable returns (Losers)
Percent unprofitable returns
Winners to losers ratio
See Stock Return Calculator for return information for individual stocks or ETFs.

Click chart to enlarge it.

Customize your own Portfolio of Preferred Income CEFs using stocks from the above table. See returns for specified combinations of stocks for specified durations.

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Preferred/Convertible Bond Exchange-Traded Funds (ETFs)
Preferred Exchange-Traded Funds (ETFs)
Preferred Stocks Deliver High Yields