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Preferred Stock Funds

Preferred Stock Funds

Income Investing and Dividend Stocks

Preferred stock is a hybrid security that has characteristics of both stocks and bonds. Income investors gravitate toward preferred stocks because they tend to pay large dividends, typically out-yielding common stocks as well as investment-grade corporate bonds. But buying a preferred stock is not as simple as buying a common stock. For starters, preferred stocks come in several share classes; this means lots of stock tickers. And not every brokerage is equipped to help you find and trade the exact preferred stock that you would like. For this reason, some investors choose to invest in preferred stocks via mutual funds and exchange traded funds.

If you're unfamiliar with preferred stock, we recommend that you read Harry Domash's excellent introduction to preferred stocks and Daniel Barnes's take on when to buy preferred stocks. If you've already learned the risks and rewards of preferred stock investing, this page contains popular mutual funds and ETFs that hold preferred stocks. You will not find closed-end funds listed here: Many closed-end preferred stock funds use leverage to amplify their yields (and risks). As a final word of caution, please note that actively-managed preferred stock funds tend to have above-average fees and a load to boot!


» Find Dividend Paying Stocks

» Find Dividend Mutual Funds

» Find Top-Rated REITs


» Preferreds Online

» Quantum Online

» Choosing Preferred Stock Funds


If you'd like to add dividend stocks to your portfolio, but aren't sure where to begin, take a free trial of TheStreet's Dividend Stock Advisor. Written and managed by Portfolio Manager David Peltier, Dividend Stock Advisor is an easy to understand "system" that can steer you to ideal dividend stocks for your investment style and goals.

Preferred Stock ETFs

Preferred Stock Mutual Funds (Open-Ended)

Preferred Stock News

Jim Cramer answered viewers' Twitter questions on matters including popular stocks, commodities and gold.
7/21/15 5:24PM
The limited fallout from Wednesday's shutdown showed how the rise of electronic platforms has changed the way an American icon functions.
7/9/15 4:57PM
The New York Stock Exchange resumed trading shortly after 3 p.m. following a technical glitch that halted transactions for more than three hours.
7/8/15 12:42PM
A panel of investment experts discussed where to find income as it is a huge generator of long-term returns.
6/29/15 6:20AM
With valuations on the expensive side and earnings slowing due to a strengthening dollar, now is the time to get defensive and own sectors like healthcare.
6/16/15 4:26PM

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