Preferred stocks are just one popular market segment accessible through ETFs. Almost every corner of the global financial landscape can be traded via ETF, and with U.S. interest rates at all time lows, preferred shares and the ETFs associated with them are attracting additional investor attention [see also our visual guide to The Cheapest ETF For Every Investment Objective]. What’s the Appeal? A preferred share is like a hybrid between a common stock and a bond. When you buy preferred shares, you own a piece of the company and in exchange receive fixed dividend payments, which are set at issuance, along with the par value of the preferred stock. The main benefits of owning preferred shares are: Tax-efficient yield: unlike a bond, the payments you receive are dividends and therefore taxed at a preferential rate to interest income. Predetermined dividend rate: With a preferred share you know what the dividend [...] Click here to read the original article on ETFdb.com. Related Posts: Visual Guide To Investing In Preferred Stock ETFs iShares Launches International Preferred Stock ETF (IPFF) Global X Debuts First Canada Preferred Stock ETF (CNPF) iShares Planning International Preferred Stock ETF Preferred Stock ETFs Continue Winning Streak
Preferred stocks are just one popular market segment accessible through ETFs. Almost every corner of the global financial landscape can be traded via ETF, and with U.S. interest rates at all time lows, preferred shares and the ETFs associated with them are attracting additional investor attention [see also our visual guide to The Cheapest ETF For Every Investment Objective]. What’s the Appeal? A preferred share is like a hybrid between a common stock and a bond. When you buy preferred shares, you own a piece of the company and in exchange receive fixed dividend payments, which are set at issuance, along with the par value of the preferred stock. The main benefits of owning preferred shares are: Tax-efficient yield: unlike a bond, the payments you receive are dividends and therefore taxed at a preferential rate to interest income. Predetermined dividend rate: With a preferred share you know what the dividend [...]
Click here to read the original article on ETFdb.com.
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