The Best Preferred Stocks For 2021

The Best Preferred Stocks For 2021

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As Wall Street loses its mind over a long bond that pays a lousy 1%, we level-headed income investors are going to stay calm. And 7.7% on.

Yes, we “prefer” (hint, hint) dividends that are 7X the weak 1% yield the wonks are clamoring about. I'll get to the specifics on these retirement makers—which we can buy as easily as common stocks—in a moment. First, let's appreciate their dividend grandeur.

The Fed is content to sit on a near-zero benchmark rate until at least next year if not 2023. Compounding the problem is that yields on traditional blue chips, while always insufficient, are a downright mockery right now—the 1.55% current yield on the S&P 500 is its lowest point in 15 years.

But what if I told you that you could squeeze three, four, even five times more dividends out of the same exact S&P 500 stocks and other blue chips? (A yield that, again, is seven-fold better than the newly famous 10-year Treasury?)



Why I Prefer “Preferreds”

Let's say we want to go out and buy shares of a company, say Bank of America (BAC) or Goldman Sachs (GS). When we do, these “BAC” and