Finding a high yield that also provides safety is a tough nut to crack. Ultra-safe assets like Treasuries still aren’t paying a ton. You can find higher yields in mortgage REITs and MLPs, but investors are then forced to eschew safety and take on extra risk. It truly is a quandary.
But it doesn’t have to be.
Preferred stock offers investors a chance to get a high yield as well as a touch of safety. These bond/equity hybrids offer a lot of benefits for portfolios in today’s market environment. Better still, a recent dip in preferred stocks offers investors a chance to grab yields not seen in quite some time.
Be sure to check out Dividend.com’s News section for next week’s other great dividend investing news.
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