Low Volatility Investing
bonds

Preferreds, Yield, And Your Portfolio

In this stubbornly low interest rate environment, traditional fixed income instruments have largely failed to provide investors with the income they desire from their portfolios.

In this stubbornly low interest rate environment, traditional fixed income instruments have largely failed to provide investors with the income they desire from their portfolios. Previously, we have focused on high dividend stocks and REITs as asset classes to consider when looking for opportunities to potentially increase a portfolio's yield. In this piece, we turn our attention to preferred stocks as another potential solution to investors' search for yield.

With over $20 billion in net inflows into preferred ETFs since 2010, preferreds have become a popular alternative for investors trying to boost the yield of their portfolios.1 In this piece, we shed light on the preferred stock space by discussing the unique attributes of preferreds, including:

  • What are preferreds?
  • What are the yield expectations for preferreds?
  • How can preferreds diversify a portfolio?
  • What are some unique features of preferreds?
  • How do preferreds fit into a portfolio?

Investment Characteristics

Preferreds are… Read More …

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