Listen: Barringer, Keith And Boca Raton discussed on Singer Wealth Management
"Lauderdale, Boca Raton, West Palm Beach and Jupiter, Florida. You can reach us at eight six six wealthy and look who's showed up Barringer. How're you? Amazing key. Thank you very much. How about yourself doing great? Thank god. So I know a lot of people are interested in investing. They liked the returns on the investment, but they don't necessarily like the volatility. Investments? So part of our job is to try to find alternatives that don't have volatility like stock market investments, but can still make good money. Precisely you know, a lot of people have historically looked to preferred stocks as a way to reduce volatility. Create an income talk a little bit about preferred stocks. What are they where do they fit into a portfolio so on and so forth? Yes, keith. The preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock higher claim. Meaning that if the company has any financial problems, and he has to get dissolved the preferred stockholders get all the assets. I I that is correct preferred shares generally have a dividend that must be paid out before dividends to common shareholders. And the shares usually do not carry voting rights. Preferred stock combines features of debt and added pays fixed. Vince, an equity and that it has the potential to appreciate in price. The details of each preferred stock depend on the issue. So typically preferred stocks that most people are used to or publicly traded, correct? Yes. So if interest rates go up that kind of makes them go down because they sort of have bond like properties, right? Yes. Exactly. Preferred shareholders definitely have priority over common shareholders when it comes to the dividends which generally yield more common stock and can be paid monthly or quarterly. And as far as the the claim on a company's assets. If it's liquidated though, they remain subordinate to bondholder, right? Okay. So yeah. The von holders, the preferred stockholders in the common."