Anyone own preferred stock

[handiacefailure]

Anyone here own preferred stock?

 

Suze orman's show yesterday was on it and I'm trying to buy stocks that pay a decent dividend right now since I don't see the stock market having any gains for at least a couple years.

 

She recommended a JPMrgan (JPM-j) prreferred stock that she thinks will be paying 10 percent pretty soon 

Edited May 31, 2023 by handiacefailure
Meant to type JP Morgan not B of A

[Beancounter]

Preferred Stock

WWW.INVESTOPEDIA.COM

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Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.

An educational link on preferred stock…..what it is, advantages, etc.   

Knowledge is power.  

[KeepItReal]

11 hours ago, handiacefailure said:

Anyone here own preferred stock?

 

Suze orman's show yesterday was on it and I'm trying to buy stocks that pay a decent dividend right now since I don't see the stock market having any gains for at least a couple years.

 

She recommended a Bank of American prreferred stock that she thinks will be paying 10 percent pretty soon 

I hardly ever recommend buying individual stocks - even preferred stocks.  I suspect you are talking about BAC.PRL (L series). 

Would recommend you consider a fund that holds preferred securities instead, like the iShares Preferred ETF or PFF. That is what I would do - sorry Suze!

 

[handiacefailure]

4 hours ago, KeepItReal said:

I hardly ever recommend buying individual stocks - even preferred stocks.  I suspect you are talking about BAC.PRL (L series). 

Would recommend you consider a fund that holds preferred securities instead, like the iShares Preferred ETF or PFF. That is what I would do - sorry Suze!

 

I have some mutual funds but did pretty good with my individual stocks, diversification is the key.

I edited the post.   I meant to type JP Morgan not B of A (JPM-J is the ticker symbol).

 

I corrected my post.   

[+ GoingGood]

6 hours ago, KeepItReal said:

I hardly ever recommend buying individual stocks - even preferred stocks.  I suspect you are talking about BAC.PRL (L series). 

Would recommend you consider a fund that holds preferred securities instead, like the iShares Preferred ETF or PFF. That is what I would do - sorry Suze!

 

This is the approach I have taken.   I would only add that one needs to be willing to dollar cost average getting in as interest rates have been so volatile.  I did not start out doing this and my investments in the preferred’s is under water but I am slowly catching up by now adding to the position monthly.  

[+ augustus]

Preferred stocks offer some really good yields but the 2 main drawbacks are no capital gain potential and interest rate risk (if interest rates the value of preferred shares usually fall, but vice versa too).

[edinbrooklyn]

On 5/31/2023 at 9:21 AM, KeepItReal said:

I hardly ever recommend buying individual stocks - even preferred stocks.  I suspect you are talking about BAC.PRL (L series). 

Would recommend you consider a fund that holds preferred securities instead, like the iShares Preferred ETF or PFF. That is what I would do - sorry Suze!

 

I knew people that got really burned from putting it all in one basket. As mentioned, diversification is key. I’m an ETF fan!

[handiacefailure]

7 hours ago, edinbrooklyn said:

I knew people that got really burned from putting it all in one basket. As mentioned, diversification is key. I’m an ETF fan!

If you own individual stocks you need to diversify and dollar cost average.   

[Pd1_jap]

Preferred stocks are really only important for activist investors and other companies looking for a voting interest. Common stock rarely gets a vote in board members or management decisions. Preferred stock usually does.

Edited June 27, 2023 by Pd1_jap
Spelling

[sutherland]

On 5/31/2023 at 9:21 AM, KeepItReal said:

I hardly ever recommend buying individual stocks - even preferred stocks

This has been my mantra for years.  The average investor (and I consider myself to be an average investor) does not have the know-how to pick a company whose stock will outperform the market. I am satisfied with Mutual funds and ETFs that track big indexes like the S&P500 and Russell 1000