You are using an outdated browser. Please upgrade your browser to improve your experience. All of our picks offer several years of protection against early redemptions. We also suggest a fine ETF. By Daren FondaAssociate Editor August 24, An aura of income is all it takes to lure investors to dividend-paying stocks these days. These stocks may not have much potential for gains after running up in price this year. But they should still generate more income than many other yield-oriented investments, including government bonds 1.

Preferreds straddle the gap between stocks and bonds.

Like stocks, they trade on exchanges. And like bonds, they make regular, though fixed, payments to investors.

But bonds pay interest, while preferreds pay dividends, typically every three months. Prices may drift above or below that level, typically moving up as interest rates fall and moving down when rates rise. Companies may also have some leeway to suspend dividend payments. Preferreds have other risks, too.

Infor instance, iShares U. Prices and yields are as of August Because preferred dividends are fixed, the stocks would also slump if interest rates were to rise.

We expect the year Treasury to finish at 1. Still, interest rates could spike if inflation becomes more of a concern, posing a threat to preferreds in the background.

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For access to good websites to buy stocks diverse package of stocks, consider the iShares preferred ETF. It holds more than preferreds issued mainly by banks, real estate firms and insurance companies.

Most of these firms carry investment-grade medical transcriptionist jobs working from home, although the ETF does own some with lower ratings. Its annual expense ratio is 0.

For a bit more income, consider buying one or more of the four preferreds described below. AmTrust Financial Services, 7.

The company earns a solid A rating, moreover, from A. Best, a firm that evaluates the financial health of insurance providers. After suffering a near-death experience during the Great Recession, Citigroup now appears to be on much sounder footing.

Although the shares trade well above par value, they still offer a generous yield. The largest bank in the U. JPMorgan issues many classes of preferred stock. But the recently issued Series T looks like one of the most compelling now.

KKR also generates income from hedge funds and other investments. But its preferred dividends look solid. Toggle navigation Menu Subscribers Log In. Sections Close Menu Wealth Creation Investing Retirement Taxes Your Money Your Business Magazine Contents.

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