In Part A, we introduced Floating Rate Bank Loans, now we turn to Preferred Stocks.
Preferred Stocks are part stocks and part bonds. They pay fixed dividends just like bonds, but shares trade just like regular stocks.
If a company goes bankrupt, owners of preferred stocks have priority over common stock holders to claim the assets of the company (but behind bond holders).
You can try iShared S&P US Preferred Stock ETF (PFF), its yield is above 6%.
Preferred Stocks are part stocks and part bonds. They pay fixed dividends just like bonds, but shares trade just like regular stocks.
If a company goes bankrupt, owners of preferred stocks have priority over common stock holders to claim the assets of the company (but behind bond holders).
You can try iShared S&P US Preferred Stock ETF (PFF), its yield is above 6%.
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