There are different levels of preferred stock, however, meaning some preferred stockholders would be paid before others. But don't make investment decisions based on who gets paid first if the company goes under. With preferred stock, choose quality corporations with high credit ratings. And investing in companies listed on the major stock exchanges makes it easy to buy and sell. An advantage of preferred stock is the frequency of dividend payments.
Most preferred stocks pay dividends quarterly, rather than semiannually like bonds.
Typically, that income may be better than what you could expect from common stocks or bonds. Preferred stock may be one of the most confusing and misunderstood investments offered to the public, perhaps because it is available in so many variations. Each has a different benefit or restriction. However, preferred stock can be appropriate if you're looking for attractive income with relative safety. Before you invest, select a financial professional who is knowledgeable about preferred stock.