📱 Best Platforms
Robinhood, E*TRADE
📖 The Hustle
Preferred stocks sit between bonds and common stocks — they pay high fixed dividends (often 5-8%) and get priority over common shareholders. Buy preferred shares of solid companies like banks and utilities that trade near their $25 par value. These pay dividends quarterly like clockwork and are less volatile than common stock. Build a basket of 8-12 preferreds across sectors and collect reliable income without watching daily price swings.
🚀 First Step
Search for preferred stock ETFs like PFF or PGX on Robinhood, buy 10 shares, and monitor how the monthly dividend hits your account.
🔑 Keys to Success
- Look for preferreds trading at or below their $25 par value to lock in a higher effective yield
- Avoid preferred stocks from companies with junk credit ratings — a high yield often signals high risk
- Start with PFF or PGX ETFs for instant diversification, then add individual preferreds as you learn
🛠 Tools & Resources: QuantumOnline, Robinhood, E*TRADE, Seeking Alpha, Preferred Stock Channel