Preferred Shares vs. Common Stocks: Welcome to Dividend Royalty: Financial Freedom, #86
By Joshua King
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About this ebook
The stock market is full of many securities, so knowing why and what you buy is essential to survive.
Most investors will only purchase common stocks, but preferred shares offer significant benefits as well.
Common stocks have unlimited upside and dividend potential. In comparison, preferred shares can give you what you need exactly.
Combining common stocks and fixed-income preferred shares will give you a paycheck and a nest egg. Use them both to become wealthy (cash flow) and rich (capital gains). Good Luck!
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Preferred Shares vs. Common Stocks - Joshua King
Table of Contents
MILITARY FAMILY INVESTING | Joshua King | Home of the Free PDF
Preferred Shares vs. Common Stocks
Monthly Dividend Tracker Template: Buy on Etsy
All Right Reserved Military Family Investing | 01 Preferred Shares vs. Common Stocks
02 Preferred Shares vs. Closed-End Funds
03 Mortgage-Backed Securities vs. Treasury Bonds
04 Debt vs. Equity
05 Investing for Interest 101: What is Fixed Income?
06 College vs. Property: Which is the Better Investment
07 Renting Rooms vs. A Recession
08 Santa’s Bringing Dividend Growth Stocks
09 Preferred Shares vs. Treasury Bonds
10 Live Your Best Life with Dividends
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MILITARY FAMILY INVESTING
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MILITARY FAMILY INVESTING
Joshua King
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Preferred Shares vs. Common Stocks
Welcome to Dividend Royalty
01 Preferred Shares vs. Common Stocks
02 Preferred Shares vs. Closed-End Funds
03 Mortgage-Backed Securities vs. Treasury Bonds
04 Debt vs. Equity
05 Investing for Interest 101: What is Fixed Income?
06 College vs. Property: Which is the Better Investment
07 Renting Rooms vs. A Recession
08 Santa’s Bringing Dividend Growth Stocks
09 Preferred Shares vs. Treasury Bonds
10 Live Your Best Life with Dividends
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Monthly Dividend Tracker Template: Buy on Etsy
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
All Right Reserved Military Family Investing
01 Preferred Shares vs. Common Stocks
There are tons of securities you can buy on a given day. So knowing what you are buying and why you are buying it is vital to long-term success.
Most investors will purchase common stocks inside their various portfolios. However, many other options exist, including treasury bonds, Series I
Bonds, closed-end funds, and mortgage REITs.
In fact, many of our favorite companies offer common stocks and preferred shares. But what is the difference, and which is the better buy for your investment goals? Let’s begin.
My Seven Principles of Wealth
Debt vs. Equity. To understand preferred shares versus common stocks, you must first understand debt vs. equity.
When a company assumes debt, they take a loan or sell bonds to raise capital to conduct business. Banks and bondholders lend money at a cost, which we call interest. They do not assume ownership (including voting rights) of the company, only the debt (loan, bonds).
Investors who invest in equity (shareholders) have ownership stakes in the company. If the company does well, shareholders can profit from these good fortunes. The reverse is true if the company tanks.
For the most part, shareholders also receive voting rights and can receive a portion of the profits in the form of dividends. They can also benefit from stock splits, mergers, and special dividends.
Will the Housing Market Crash?
Unlimited upside potential. Shareholders have unlimited upside when investing in common stocks. They can buy a stock for $5, which can travel to $3,000 and beyond.
However, bondholders are first on the liquidation list