This Stock has been flat for 3 years – You’ll just love it!

First look at this chart, this stock hasn’t moved more than $1.00 in the last 3 years. Why would you possibly want to own it in your portfolio? Because it is a “money machine”!!!!

 Barclays Pre

 

 

 

 

 

This is an excellent example of a “preferred stock” that is a money machine. It pays a current 7.70% quarterly dividend that is a “qualified dividend” for tax purposes. The dividend is fixed at $2.03/year. It trades under the symbol BCSPRD (Fidelity) you can look it up on Yahoo Finance under BCS-PD.  Barclays Bank is a UK based and worldwide financial powerhouse. It carries a S&P BB rating (not bad at all). At this current yield, you will double your investment every 9 years by just re-investing your dividends each quarter.  This preferred was originally issued at $25/share and 8.13% yield. As it rose in price to $26.xx the yield dropped to the current 7.7%. If you bought it at the initial $25 price you would still be getting the 8.13% yield.

For those of us who need a well balanced portfolio and are always looking for non-volatile stocks that are also tax friendly, preferred stocks are a great choice. I have allocated a portion of my core portfolio to quality preferred stocks with high-yields.  In general, they don’t go up or down in price but they sure crank out their nice steady dividends.

Preferred stocks act almost like a bond. They have coupon values, fixed dividends, call or expiration dates and so forth.

You can learn more about Preferred Stocks by checking out these sites.

https://www.preferredstockchannel.com/

http://www.investopedia.com/terms/p/preferredstock.asp

 

One thought on “This Stock has been flat for 3 years – You’ll just love it!

  1. Pingback: Preferred Stocks – 7% – 9% Safe and Stable Income – Jim Hammond's Blog

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