Those who buy preferred stock have no voting rights within the company but will carry a dividend. Preferred stock has priority over common stock but bonds have priority over bonds. That means, if the company goes bust, owners of preferred stock get what’s owed them and if there’s any left over after that, owners of common stock get some or all of their investment back.
It’s a matter of where you are in line to get paid if and when the company goes under and remaining assets are liquidated. Preferred stock owners are junior to all other creditors except common stock owners.