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cgavin5

01/10/18 9:57 AM

#75495 RE: trkyhntr #75489

Good morning,

Research I've done readily available online. I'd just as soon buy common stock or non callable bonds. Many preferreds are thinly traded and subject to company's whim, beyond that I think it best for you to do your own D D.

For me bonds are the best investment because I'm trying to improve retirement income returns and for the most part uninterested in speculating on stock prices going forward. Especially in this frothy market.My focus is one crating an income stream to augment my annuities, deferred compensation, social security and pension. That now is my top priority. Our investment goals may differ.

Bonds are guaranteed income with very little chance of default or repayment. If I'm going to choose between a bond and a preferred, a bond holder will receive payback before a preferred stock holder. A bond yield will not change. A preferred stocks yield is subject to change. If the company has a bad quarter or quarters, they can elect not to pay dividends to stockholders. They can't elect not to pay dividends to bond holders. Now the company stock would most likely continue to pay dividends on a bad quarter, many perhaps, but eventually you'd either have to sell the stock to recapture investment or accept not receiving dividends if the company elected not to pay. If a company announces they are cutting dividend, 2 things could happen- 1. The stock rises. 2. The stock falls. I'm not up for that.