What Are the Advantages of Investing in Preferred Stocks?
Investors are attracted to preferred stocks for several reasons:
Fixed Dividends: Preferred stocks offer regular and often higher dividend payments. Priority in Dividends: Preferred stockholders receive dividends before common stockholders. Reduced Volatility: Preferred stocks tend to be less volatile than common stocks. Convertible Feature: Some preferred stocks can be converted into common shares under certain conditions, offering potential for capital appreciation.