Tag archives: Preferred Shares

Preferred Shares Are Not As Attractive As They Seem

Last update on June 4, 2015.


In recent years, many people have been drawn to the idea of investing in preferred shares.

Preferred shares are "hybrid" investments that behave like stocks in some ways and behave like bonds in others. Like bonds, preferred shares offer regular payments, but like stocks, those payments are in the form of dividends which are taxed at lower rates. When you combine these features with the fact that preferred shares generally yield higher than bonds, it's not hard to see why many people like them.

However, Canadian preferred shares have some pitfalls that investors should know about, especially in ...

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