The best of the Web on money, markets and all things financial, as chosen daily by Globe and Mail personal finance columnist Rob Carrick.
Dial M for Mortgage
Preferred Share Roundup
When times are uncertain on the stock markets, people flock to investments like bonds and dividend stocks that pay income. Income investments are seen as being safer, and there's the comfort of receiving cash in the form of dividends or interest payments no matter what financial markets are doing. This is the background you need to understand the debut this week of a couple of new exchange-traded funds that offer a way for investors to generate dividend income through preferred shares.
Here's a look at one of the new ETFs, an actively managed fund from AlphaPro, by one of the country's top experts on preferred shares.
A roundup of U.S.-listed preferred share ETFs. Mind the significant level of exposure these funds have to the financial sector.
Souped Up Investing
Preferred shares dividends offer reliability because they can't be touched by a troubled company until it has first cut common share dividends. But there are two disadvantages to pref shares - they offer little or no potential for capital appreciation and zero possibility of dividend growth. You get both of these things from the kind of U.S. stocks Forbes.com examined recently in this slideshow.
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