3 Preferred Stocks With Dividend Yields of 6% or More

Preferred stocks are issued for a capital raise that are used for whatever the prospectus indicates. However, there is a crucial difference between this and regular equity, in that a preferred share does not represent company ownership. Nor is it debt insomuch as there is no collateral behind it. Preferreds offer higher yields than bonds, though, because they sit behind bonds in the capital stack. In other words, if the company goes bankrupt, then debt obligations are paid first with available collateral. Anything left after that next gets distributed to the preferred shareholders

One thing I love about many (but not all) preferreds is that their dividends are cumulative, thus accruing should a dividend be suspended, and must be paid in full before common stock dividends get paid again. Here are three preferred stocks I like right now that yield between 6% and 10%. Preferred Stocks Yielding 7% or More: Digital Realty Trust, Inc. (NYSE:DLR), Costamare Inc’s (NYSE:CMRE) and W.P. Glimcher Trust (NYSE:WPG).

Source: InvestorPlace

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