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 8 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|
|Nuveen Quality Preferred Income Fund 3|
|Click small charts (sparklines) to expand. * Uses 10 years or all years of prices, whichever is less.|
To follow the progress of the Preferred Income CEFs portfolio, check out the returns table and chart below. Portfolio values are computed using weekly closes for stocks from Yahoo! Finance. The 7 stocks included in the portfolio computations are: PFD, PFO, HPI, HPF, HPS, JPS and JHP. The current value of the portfolio assumes that $1,428.57 was invested (total of $10,000) in each stock at its closing weekly price for the current date for 2004. BTZ was excluded from the portfolio computations because of insufficient price data.
Preferred Income CEFs - Return Results
Preferred Income CEFs
|Minimum value occurred on Oct-06-2008|
|Maximum value occurred on May-06-2013|
|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|
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.