Preferred stock
Fixed IncomeDefinition
Hybrid security: bond-like fixed dividends + equity-like ranking below debt but above common stock in liquidation. Most preferred stocks are "perpetual" (no maturity).
Yields typically 5-7% — between corporate bonds and junk. Heavily issued by banks for regulatory capital. Tax treatment: dividends qualify for preferential rates in retail accounts. ETFs: PFF, PFFD, PGX.
Yields typically 5-7% — between corporate bonds and junk. Heavily issued by banks for regulatory capital. Tax treatment: dividends qualify for preferential rates in retail accounts. ETFs: PFF, PFFD, PGX.
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