Investments in preferred stocks

Terry Says

It all depends on the company — and its ability to continue paying dividends. Of course, preferred dividends get precedence on earnings, but creditors (debt buyers) come first. If a company is paying a temptingly high yield on its preferred stock, double check on the security of the dividend. I recommend Chuck Carlson’s book “The Little Book of Big Dividends” for more. I wrote the preface for this book –it’s great!