High Yield Preferred Equities

Preferred Stocks are a hybrid class of investment that combine some of the qualities of both stocks and bonds. They pay regular, fixed dividends that are a legal obligation while dividends paid on common shares are discretionary. Preferred stockholders have a claim on a company's assets before common shareholders in the event of bankruptcy or liquidation.

Unlike bonds, many preferred shares do not have a stated maturity date. Some preferred shares are perpetual and continue to pay dividends indefinitely. Perpetual preferred stocks usually have a "call" provision that allows the company to recall the security/obligation at a future date, repaying the investor the “par value” of the security.

Consult your APS Financial Representative to receive a list of Preferred Securities that may provide useful diversification to your investment portfolio.