JPS - Buy Nuveen Preferred & Income Securities Fund When It Trades At A Discount To NAV For Income
Moving beyond just picking stocks means paying attention to portfolio construction concerns. Chief among these for intelligent investors should be asset allocation. Many investors see binary possibilities - stocks or bonds. There exists however a hybrid class of securities called Preferred Stocks. These are equity positions that pay a yield that is preferred to ordinary dividends. When cash is tight, the preferred shareholders must be paid first. In addition, in the event of bankruptcy, preferred shareholders are supra in the capital structure to ordinary shareholders and must be paid off before common shareholders can receive