04-03-2020, 09:13 PM
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.