Sheaff Brock Preferred Income portfolio Archives

Sheaff Brock Refresher Course on Preferred Stock

27 Sep

Preferred Stock 101+

(Quick Preferred Stock “cheat sheet” coaching session for those “in the know,” but who could use a little reminder before investing): Companies raise capital by either borrowing money or by selling ownership. To accomplish that goal, they issue either debt or equity securities. As an alternative, by issuing preferred stock, a company combines the characteristics of both debt and equity. There are some advantages to a company that issues preferred securities: Issuing preferred stock as opposed to bonds keeps the [...]

By Sheaff Briefs Editor Perspectives, Portfolios
active management, callable preferred stock, convertible preferred stock, cumulative preferred stock, current yield, generate income, investors, noncumulative preferred stock, portfolio diversification, preferred dividends, preferred stock, preserve capital, qualified dividends, Sheaff Brock Preferred Income portfolio, Sheaff Brock senior portfolio manager JR Humphreys, yield to call Read more...

Sheaff Brock Preferred Stock portfolio | question marks about rising interest rates

16 Apr

Preferred Stock—Expect the Question; Consider the Answer

The unrelenting search for reliable investment income is an important theme in retired clients’ investment plans, and preferred securities certainly share the limelight. What’s more, given the current buzz about the new tax law, it’s hard to ignore the fact that certain features of the law can favor investing in preferred stock, potentially increasing the demand for high-income investment vehicles. The question: As you’re discussing this very topic at the tennis club, expect the question: Interest rates are on the rise. By [...]

By Sheaff Briefs Editor Portfolios, Possibilities
active portfolio management, diversified income stream, investment income, new tax law, preferred income, preferred securities, preferred stock, preferred stocks, rising interest rates, Sheaff Brock Investment Advisors, Sheaff Brock Preferred Income portfolio, Sheaff Brock senior portfolio manager JR Humphreys Read more...

Sheaff Brock Preferred Income Portfolio | Impact of New Tax Law on Preferred Stock

10 Apr

New Tax Law Bodes Well for Companies Issuing Preferred Stock

There’s a whole lot of media buzz going on about the new tax law and how good a thing that law is turning out to be for corporate America. Turns out, certain features of the law may be a very good thing for investors in preferred stock as well. What’s that all about? First, by way of quick review, preferreds are hybrid securities, blending traits of both stocks and bonds. Preferreds, like common stock, represent ownership in a company, but [...]

By Sheaff Briefs Editor Portfolios, Possibilities
actively managed strategy, dividend income, hybrid securities, lower corporate tax rate, new tax law, preferred securities, preferred stock, preferred stocks, Sheaff Brock Preferred Income portfolio, Sheaff Brock senior portfolio manager JR Humphreys Read more...

Interest Rate Signs Increasing in Size | Managing Interest Rate Risk for Preferred Stock Income | Sheaff Brock Investment Advisors

02 Apr

Managing Interest Rate Risk in a Preferred Stock Portfolio

If I invest in preferred stock for the income just when interest rates are rising, won’t I be setting myself up for losing money? “Not necessarily,” contends JR Humphreys CFA, CAIA, Senior Portfolio Manager at Sheaff Brock Investment Advisors. Humphreys explains that, “increasing interest rates is usually the result of an improving economy that could lead to credit rating upgrades for the preferred equity, resulting in a higher price.” Many investors have the perception that preferred securities are highly interest-rate [...]