🌮🔥 TACO TUESDAY #11: PREFERRED STOCKS ON THE MENU The Hybrid Taco—Part Stock, Part Bond and Loaded With Fine Print

🌮🔥 TACO TUESDAY #11: PREFERRED STOCKS ON THE MENUThe Hybrid Taco—Part Stock, Part Bond and Loaded With Fine PrintPreferred stocks may offer attractive income and priority over common shares—but “preferred” does not mean protected, guaranteed or senior to the company’s debt.In this episode of the Unbearably Bullish Podcast, host Donald Johns breaks down how preferred stocks work, why companies issue them and what investors should examine before focusing on the advertised dividend rate.On today’s menu:🌮 Where preferred stock sits in the capital stack🌮 Cumulative versus noncumulative dividends🌮 Fixed-rate, floating-rate and fixed-to-floating preferreds🌮 Callable and convertible preferred shares🌮 Dividend rate versus current yield🌮 Call price, call date and yield-to-call calculations🌮 Interest-rate, credit, liquidity and reinvestment risks🌮 The danger of purchasing above liquidation preference🌮 Potential tax-treatment considerations🌮 The preferred-stock yield trap🌮 A practical ten-point research checklistWe also serve the $27 Taco: a hypothetical example showing how purchasing a preferred stock above its $25 redemption price can weaken total return if the issuer exercises its call option.The bull sees income, priority and diversification potential.The bear sees limited upside, dividend risk, interest-rate sensitivity and subordination to creditors.The disciplined investor reads the prospectus and evaluates both.🎙️ Unbearably Bullish Podcast🌐 www.thebullyoucantbear.comStrong Markets. Stronger Mindset. Unlimited Opportunity.Disclosure: This program is provided solely for general educational and entertainment purposes. Nothing presented constitutes financial, investment, legal, accounting or tax advice; an offer or solicitation; or an endorsement or recommendation of any issuer, security or strategy. Examples are hypothetical. Preferred securities involve risks including dividend suspension or omission, interest-rate risk, call and reinvestment risk, credit and default risk, liquidity risk, subordination, market volatility and possible loss of principal. Cumulative status does not guarantee payment, liquidation preference does not guarantee market value or recovery, and yield to call is not a guaranteed return. Tax treatment varies. Review current offering documents, conduct independent research and consult appropriately qualified professionals before making financial decisions.#PreferredStocks #IncomeInvesting #DividendInvesting #FinancialEducation #TacoTuesday #UnbearablyBullish