The Risks, Rewards, and Who Should Own Preferred Stocks
Preferred stocks are really designed to provide a steady income through dividend payments, and their yields tend to be higher than traditional fixed income investments. For some people, this really adds to their appeal. Most of them are traded on a stock exchange, so you may also see greater transparency with the price. However, there are some risks and potential rewards of owning preferred securities, along with the big question: how do you know if they’re suitable for YOU?