In today’s market environment, finding yield has become increasingly problematic for investors. This can be especially true for those in—or nearing—retirement. For these investors, one good option may be preferred stocks.
While you’ve probably heard of common stock, many investors are new to the world of preferred stocks. Often referred to as hybrid investments because of their likeness to common stock and bonds, preferred stocks have the potential for high yields with stable dividend payments—two common traits sought out by retirees. Preferred stocks are even used by the likes of Warren Buffet.
Sign up today for our webinar on preferred stocks and get the lowdown on these unique investments. We’re excited to be featuring special guest Brian Rivera, Senior Vice President from CIM Group, for this upcoming event.
Here are just some of the topics we’ll cover:
- What are the advantages and disadvantages of owning a preferred stock over common stocks and bonds?
- Are there any potential tax advantages to owning preferred stocks?
- Where do preferred stocks fit into retirement planning?
- Is a preferred stock a suitable match for my portfolio?
If you’re interested in an investment that offers the potential to earn income, we’ll show you why preferred stocks may offer higher and more consistent dividends.
Important Information
Investments in non-traded Real Estate Investment Trusts (REITs) are subject to significant risks. These risks include, but are not limited to limited operating histories, reliance on the advisors, conflicts of interests, payment of substantial fees to the advisors and their affiliates, and illiquidity. If you are able to redeem shares, they will generally be redeemed for less than the original amount invested. Investing in these products may not be suitable for all investors. This material should not be considered a solicitation of an offer to sell/buy any specific security or offering. Investors should consult a financial professional to determine whether risks associated with an investment in the shares are compatible with their investment objectives.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.
This material should not be considered a solicitation of an offer to sell/buy any specific security or offering. Investors should consult a financial professional to determine whether risks associated with an investment in the shares are compatible with their investment objectives.
There are two types of equity - common stock and preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders. Preferred stocks are sensitive to interest rates, the share price generally falls as prevailing interest rates increase. Other risks include perpetual life (or very long maturity), a call feature, low credit standing, deferrable dividends and (for traditional preferred stocks) depressed yield due to demand from corporations that receive favorable tax treatment. The details of each preferred stock depend on the issue.
It is important to keep in mind that investments in fixed income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise and rise in price when interest rates fall), financial (or credit) risk, inflation (or purchasing power) risk and special tax liabilities. Interest may be subject to the alternative minimum tax. Treasury securities are backed by full faith and credit of the U. S. Government but are subject to inflation risk.
Rick Plum is a registered representative of, and offer securities through, Lucia Securities, LLC, a registered broker/dealer, member FINRA/SIPC. Advisory services offered through Lucia Capital Group, a registered investment advisor, and an affiliate of Lucia Securities, LLC. Registration with the SEC does not imply a certain level of skill or training. John Dean is an associated person of Lucia Securities, LLC. Brian Rivera and CIM Group are not affiliated with Lucia Securities.