Super-Safe Preferred Stocks Providing Plentiful Payouts

Preferred stocks are the unsung heroes of dividend yield. Preferreds only really started to get attention when bond yields cratered, sending dividend investors on the hunt for other sources of fixed income. And I have to admit, when I found preferred stocks, I fell in love.After all, preferred stocks have many of the advantages of bonds in that they trade in very tight range, they pay a regular dividend, and they are higher up in the capital stack than equity. In addition, if a company is forced to reduce dividends, it must first kill the dividend to the common stock before the preferred stock.

Now, onto those preferred stocks to buy: Of all the preferred stocks out there, I’ve written most frequently about Ashford Hospitality Trust (AHT) Series D 8.45% preferred stock. I love this hotel REIT and its stock. I also like both Public Storage (PSA) and its Series T preferred stock. Of course, if you’re worried about picking the right preferred stock, you can always go with an ETF, which offers diversification. There are a few preferred ETFs floating around, but one I favor is the PowerShares Preferred Portfolio (PGX).

Source: InvestorPlace

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