Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

E-Commerce Boom Powers Best Dividend Stock Closer to Dividend Aristocracy

Dividend logo

Like closed-end funds, preferred stocks are one of those relative backwaters of the investing world often overlooked by investors. This could be a good time to take a fresh look at preferred stocks.

First, it won’t hurt to give a fast explanation of this investment class, which combines elements of equity and fixed income instruments.

The ABCs of Preferred Stocks

In terms of a company’s capital structure and seniority of who gets paid if the company goes belly up, preferred shareholders stand behind bond owners (creditors get paid first), but ahead of common stock owners. Preferred stock owners also come before common owners if the company decides to pay dividends; they must be paid first.

Preferred shares also usually have a call provision, which means the issuer can repurchase the shares whenever it wishes, and they usually carry a fixed dividend, typically a percentage of the par value of the stock or a fixed amount. Sometimes the dividends float according to a benchmark rate.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 718860205
News

We May Finally See Wage Growth

If we had to describe the recovery since the Great Recession in one word, it would have to be ‘...

Premium Shutterstock 718336300
News

The Market Wrap for September 22: Astounding Escalation in Rhetoric

President Trump’s economic nationalism-centric speech at the UN with his threat to “totally...

Dividend Investing 101

Dogs of the Dow Investment Strategy Explained

Very few stock indices represent the power and fortune of Wall Street quite like the Dow Jones...