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.


7 Preferred Income CEFs

Stock & Price Chart

Symbol

BlackRock Credit Allocation Income Trust IVBTZ
Flaherty & Crumrine Preferred Income FundPFD
Flaherty & Crumrine Preferred Income Opportunity FundPFO
John Hancock Preferred Income FundHPI
John Hancock Preferred Income Fund IIHPF
John Hancock Preferred Income Fund IIIHPS
Nuveen Quality Preferred Income Fund 2 JPS

Related Portfolio and Article

Preferred Stock Closed-End Funds Offer Income and Good Yields

Preferred Stocks Deliver High Yields