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Nuveen Quality Preferred Income Fund 2 (JPS) RSS Feed

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Created
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If you’re willing to venture a little out of your traditional income investor “comfort zone,” you can achieve something that sounds impossible.
 
You can lower your risk, diversify your income, AND still collect healthy yields of over 7% a year.
 
If that sounds good to you, consider preferred stocks – hybrid securities that have characteristics of both stocks and bonds.
 
You might have heard of these investments before, and perhaps thought you need a fortune to invest in them – or that they’re too complicated.
 
But neither of these concerns is true.
 
Preferred stocks are like common stocks in that they pay dividends, and their shares trade on the major stock exchanges.
 
Preferred stocks are like bonds in that they are issued with a dividend-coupon based on par value. What's more, dividends are contractual, just like interest on a bond, so you know your cash flow ahead of time.
 
And like bonds, most preferred stocks are followed by rating agencies like Moody's and Standard & Poor's.
 
In short, preferred stocks are safer than common stocks because they have a higher claim on the company's assets. And in some instances, they are nearly as safe as bonds.
 
Best of all, there are quality preferred stocks that yield 7% and above. Good luck finding a quality bond or CD with a similar yield.
 
I mentioned that preferred stocks pay dividends, which imparts a tax advantage compared to interest on bonds (except some municipal bonds). Qualified preferred-stock dividends are taxed at a maximum rate of 15%, while interest is taxed at your marginal income tax rate.
 
To be sure, preferred stocks aren't perfect. Individual selection can be an issue for some investors, because preferred stocks have a few more moving parts compared to common stocks.
 
For instance, the vast majority of preferred stocks have a call date, where the issuing company can redeem the preferred stock. A call date doesn't mean an issue will be called, it means it can be called. But if a preferred stock is trading above par value, normally $25 a share, you can suffer a capital loss if you pick an issue that's called.

 
Nuveen Quality Preferred Income Fund 2
333 West Wacker Drive
Chicago, IL 60606
Company Home Page |

Industry: Financial Services 
SIC: 6726 
Employees: 0 
Locations: 0 

State of Inc: MASSACHUSETTS 
Development Stage? N
Transfer Agent:
Computershare Investor Services 
Golden, CO 80401 

Investor Relations:


 
Authorized Shares: 119,541,842 
Source: MGFS ( 12/31/2004 )

Outstanding Shares: 120,321,842 
Source: MGFS ( 09/22/2011 )

Fiscal Year End:

 
 
 





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