Preferred stock shares can be quite bland. Preferred dividends are safer than common stock dividends, with the trade-off that preferred dividends pay at a fixed rate, rather than growing, as common stock dividends can.
Most preferred shares are perpetual but, at some point, become callable by the issuer. Whether preferred shares get called in is entirely at the company’s discretion. I tell my subscribers to think of preferred investing as buying a long-term income stream.
This post originally appeared at Investors Alley.