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Episode 057: Dr. Derek Horstmeyer on multiple investment topics, host Rick Ferri

Bogleheads On Investing Podcast

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The Tax Benefits of Preferential Stocks

preferred stocks delivered about 7.2% and with a little bit less volatility than long-term bonds. But again, we didn't see some strange out of equilibrium behavior where preferred stocks absolutely knocked out of the park. The other thing about preferred stock that I personally like is I own it in my taxable account and a lot of the dividend yield that comes in is treated as a long-term capital gain because it's a stock dividend.

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