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Preferred Stock

Check where they are traded before you buy. I bought some Alabama Power preferred without noticing that it traded on the pink sheets. The price zig-zagged madly on very little volume. I eventually got out with a GTC order for my entry price, but it took about a month to execute. The same company has some other preferred that trade on major exchanges and have more volume, but at a lower yield. If all you want is the income stream regardless of the volatility and time to exit, the ones on the pink sheets make some sense.
Most are taxed a regular rates and not the 15%. I have done well with them over the last 20 years. They probably go down as interest rates go up but to me that is the time to buy and you will lock in some nice dividends as least until they are called. Some do quality for the 15% rate on taxes and that does help as well. Use the Quantumonline.com web page.
Does anybody know why TCGP is trading so low at $22.00, yielding 6.7%, not callable until 9/22? This is the Carlyle Group (CG), one of the most respected management firms in the world and very profitable. Seems too easy to get 6.7% and trading way below par. I can't imagine this company missing any preferred dividends in the future. With rising interest rates, you might get this dividend forever.

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