It's possible to get 8% and more without taking undue risk. Preferred shares pay a fixed quarterly dividend. This makes them a very good choice for sustaining retirement income. The keys to choosing good preferred shares are:
-Selecting companies with stable businesses
-Selecting preferred shares with call protection of 2 years or more
-Selecting preferred shares with good current yields and "yield to call"
Preferred shares are "callable" by the issuing company, which means that the company can redeem the shares at $25 (in most cases) per share at a certain date. If you find good preferred shares that pay, for example 8%, you want to know that the company can't call it in right away. The longer the time period until the company can call the shares the better the "call protection." Additionally, you want to make sure that the combination of the price you pay for shares, the call price and the current dividend, give you a favorable total return, called "yield to call."
Fortunately, you do not need to figure this out as we have already done so and selected some shares that provide attractive terms. If you'd like to know how to get these shares and start an attractive income stream for yourself, just check off on the coupon and we'll let you know how it's done and send you a list or preferred shares yielding around 8%.