Since 1950, corporate bonds and preferred stocks have both produced average annual returns above 7 percent.
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Before you reach for yield in preferred stocks, however, consider some of the risks.
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This was partly because 83% of the preferred stocks are concentrated in the financial sector.
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My low-pressure cru bourgeois plays going forward embrace bank preferred stocks yielding near 8 percent.
The fund could invest in everything: municipal bonds, equities, preferred stocks, futures, options and options on futures.
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It also puts a key component of what makes preferred stocks attractive, income flow, at higher risk.
Although good data on preferred stocks is not generally available for free on popular investing websites like Yahoo!
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Practically all were closed-end fixed-income securities, preferred stocks or some other form of fixed-income product masquerading as stocks.
Another avenue are funds focusing on investments that have elements of both stocks and bonds, such as preferred stocks.
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Not that you'll always sleep well with preferred stocks and A-rated corporate debentures.
Many of the arbitrations pending these days involve conservative investors who were sold preferred stocks issued by financial services companies.
Hybrids between the two, like preferred stocks and convertible bonds offer future cash flows which are partly fixed and partly variable.
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Noah Rosenfarb, the Singers' financial adviser, invested money targeted for the down payment in short-term bonds, preferred stocks and dividend-paying stocks.
Those seeking tax-sheltered returns can do better, at least until 2011, by buying preferred stocks eligible for the 15% dividend tax rate.
Analysts at Nomura also cited Samsung in a note this morning as among their preferred stocks in the smartphone and handset market.
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A-rated preferred stocks that yielded 7% two years ago now yield 9%.
Instead, he negotiated nearly riskless deals in preferred stocks with equity kickers.
Below-investment grade paper yields more than 8%, as do A-rated preferred stocks.
Scanning the universe of preferred stocks covered by Preferred Stock Channel, a number of high yielding issues can be found in the energy sector.
Like bonds, preferred stocks are often callable after a certain date.
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Preferred stocks trade in the mid-teens and yield 14 or 15%.
In 2009, for the first time in my life, I bought municipal bonds and preferred stocks, mainly bank preferreds then selling on parity with their common stock.
Remember, too, to look at the preferred stocks of utilities.
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Even so people still preferred the better returns that stocks offered.
Preferred shares have historically provided diversification benefits relative to bonds and common stocks, though their prices can be impacted by changes in interest rates and earnings.
Here are the Preferred Eight Community and Regional Banks: I do not hold any positions in these stocks mentioned.
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