Investing In Preferred Stock
Preferred shares are sold in par value amounts and pay a fixed dividend to all stock owners. Many preferred stocks are convertible into common stock, and are callable by the issuing company. People who begin buying or investing in preferred shares enjoy a regular dividend payment and the ability to switch to common shares in the company. Oreferred Stock Investing is a fixed income strategy.
The preferred dividend rate is similar to a bond interest payment, although unlike debt payments - the dividend is not an obligation to the company.
Most of the corporations that issue this type of stock are income based companies. They have the income to make these dividend payments. Buying preferred stock in a company is an income strategy.
Most dividends are cumulative. This means that if a preferred share has a dividend rate of 6%, but the company only paid 4% one year, they will them owe you 8% going forward. The amount of the stock dividend that was missed, is made up. Although this is not an obligation. Buying preferred shares gives the person the chance to
get the benefit of fixed income investing, but at a higher rate than a bond.
If the company goes out of business, preferred stockholders are paid ahead of common shareholders. Common shares get paid dividends only after preferred investors are paid.
Buying this type of stock or investing offers a fixed rate of return, but stockholders are still at risk if the company does not earn any income going forward. Unlike bond creditors, preferred stock investors cannot make claims on lost money if the company fails.
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This latest edition of Preferred Stock Investing shows you how to screen, buy and sell the highest quality preferred stocks to earn above average dividend income while creating multiple downstream capital gain opportunities.
Income investors already know about Doug K. Le Duís widely published preferred stock research articles and newsletters. Doug writes in plain English for non-experts. And now his latest preferred stock research is available in Preferred Stock Investing.
This completely updated edition includes Dougís latest research and updated charts and examples using real preferred stocks. This edition has been completely re-written to focus on the buying conditions that we will be facing over the next two years.
Preferred Stock Investing starts at the beginning, explaining what preferred stocks are, the three different types and the pros and cons of investing in them versus common stocks, bonds or bank Certificates of Deposits. From there, Preferred Stock Investing uses actual preferred stocks to show you how to screen, buy and sell the highest quality issues.
Also, through the book's website readers of Preferred Stock Investing are supported by a wealth of continuously updated resources, including a free monthly preferred stock research newsletter. Preferred Stock Investing lists all qualifying preferred stocks that have been issued since January 2001 and shows you the actual results that you would have had by following the preferred stock investing method described throughout the book.
The information presented within Preferred Stock Investing makes it very clear that the highest quality preferred stocks represent one of the best investment opportunities for individual investors.
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