Preferred Investors
Preferred stocks can be a valuable part of any portfolio, but be careful of the taxable rate
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Preferred stocks may not get as much press as their common brethren, but they have some advantages that regular equities don't.
Preferred shares are advantageous because they generally offer higher fixed-income payments than bonds or common stocks, the capital outlay to invest in preferred shares is lower than with bonds, and the prices are more stable than those of common stocks. What's more, many preferred shares are only taxed at a rate of 15%.