In this crazy market there is an overwhelming demand for investments that pay high dividends and that are not caught up in the daily swings of the market. One area that is often overlooked is Preferred Stocks.
They hybrid between stocks and bonds have been a top choice of wealthy investors for years, but the average investor steered clear. We have owned preferred stocks for our clients as well as ETFs that investment in them for years.
Our favorite preferred stock ETFs for clients and subscribers of The ETF Bulletin is always available to our members. I am not going to give everything away today. However, there are 2 preferred stocks that have caught my eye recently and I will share them with you.
Annaly Captial Preferred A ($NLY-PRA) has a yield of 7.1% and has been moving sideways for months as the stock ($NLY) has done the same, but with much more volatility.
Public Storage Preferred P ($PSA-PRP) has a yield of 5.7% and has been on a slow uptrend for the last year. The stock ($PSA) has had a better overall return, but a lower yield and significantly higher volatility.
There are pros/cons to both preferreds versus the common stock and they are not the best fit for all investors, but they are worth a look.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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