Preferred stocks paying 6-8%

[irish_sd]

I saw some complaints on few threads regarding CD's being horribly low.
in the fixed income market right now there 2 great opportunities.
#1 Tax Free AAA and insured municipal bonds at 5%- Now you gotta go out 30 years in maturity but a 5% tax Free? Come on that's like a 7% CD. The stock market historically has done 9%

#2 Preferred stock from 6-8%. The range is based on the credit quality of the company. But just take 7% for example, these do not mature and they are considered a dividend and qualify for QDI, meaning they are only taxed at 15%. Sickening. Be careful though, as the principal in these will move around a bit. But for a portion of your money, these are a great play.
Again these are in my opinion great plays in the fixed income market right now, for investors who want income .

 

[gogotren]

For income I dont like preferred stock cause like you said you can loose 10,20, 30% of your principal trying to get a 6% dividend. Washington mutual was paying 6% back in oct 07 at $35 a share. Now its $12 and they cut the dividend down to nothing.

I prefer PVX or other traded energy trusts, 11% dividend and the sotck does not move much... plus its in a strong sector. I also like privately held real estate investment trusts... REIT`s. 7% dividends, tax efficient (not fully taxable because of pass thru depreciation, etc) plus there is capital appreciation on your principal. These are commercial properties, office buildings, warehouse, residential apts.