| 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 so they are not intended to achieve capital gains.
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.
Click on the blue chart to the right to see more information about
PGF and PSY.
Related Articles:
Closed-End Funds
Exchange-Traded
Funds
Preferred Stocks
Deliver High Yields
Posted March 18, 2007.
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