August 2021

Preferred stockholders are entitled to receive dividends before common stockholders, providing them with a consistent income stream. Preferred stock gets its name because preferred shareholders are in a “preferred” position to receive dividend payments and be paid back first in the event of bankruptcy. As with all investments, the answer depends on your risk tolerance […]

Technically, they are equity securities, but they share many characteristics with debt instruments. Cumulative Preferred Stock has lower yields, limited voting rights, and is subject to interest rate risk. The priority in asset distribution, especially during liquidation, enhances its appeal, appealing to risk-conscious investors. While this provides flexibility to the company, it introduces an element

Through an online broker or by contacting your personal broker at a full-service brokerage. In this article, we look at preferred shares and compare them to some better-known investment vehicles. Investors should also be aware of the potential drawbacks of CPS, such as limited voting rights and interest rate risk, and weigh them against the