AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
The Benefits of Preferred Shares in a Risk Parity Portfolio
preferred shares are similar to municipal bonds in the respect that they are very good for people in high tax brackets in taxable accounts. The dividend payouts from preferred shares funds are mostly qualified dividends so they get taxed at the lower long-term capital gains tax rate. They do not have much capital appreciation but do pay most of their returns in the form of these dividends and you can use them as kind of stock bond hybrids.