Securities,
Corporate
Oct. 1, 2019
A primer on preferred: Getting your yield’s worth
The difficult aspect of investing in preferred stock is understanding what characteristics are best suitable depending on an investor’s risk profile and choosing those opportunities that provide the best yield.
Sara L. Terheggen
Founder and Managing Director
The NBD Group, Inc.
UC Berkeley Boalt Hall
The NBD Group, Inc., a leading legal and business solutions firm. Dr. T has advised on transactions with an aggregate value of more than $110 billion, including more than 20 IPOs, and she has been recognized close to 50 times for her professional expertise and leadership.
Preferred stock in the context of an underwritten registered transaction by a public company catches the eye of many income-focused investors as they can offer attractive yields through ongoing dividend payments. This is especially true in an environment like we are in now with declining interest rates. Similar to common stock, preferred stock is equity in a company but with debt-like qualities. Preferred stock ranks senior to common but juni...
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