Replies to post #106673 on Mohacsy's Safe Portfolio Member Forum

[gfp927z]

santafe, I was curious about your preference for preferred stocks vrs other types of 'yield' investments like bonds? Thanks for any insights :o)



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[gfp927z]

>>> How Are Preferred Stock Dividends Taxed?

INVESTOPEDIA

Though preferred stock dividends are fixed like interest on a bond, they are taxed differently. Many preferred dividends are qualified and are taxed at a lower rate than normal income. Except for investors in the highest tax bracket who pay 20% on qualified dividends, most preferred shareholders owe only 15%. People in ordinary income tax brackets at 15% and below pay no tax on qualified dividends.

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https://www.investopedia.com/ask/answers/102714/how-are-preferred-stock-dividends-taxed.asp


I can see the attraction :o)


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