Uploaded June 2025 | Updated September 2026, 2 weeks ago
In this episode I’ll explain what preferred shares are, how they compare to stocks and bonds, their pros and cons, and whether they belong in a portfolio. I’ll end things by sharing some fascinating data from a dividend expert who analyzed the average dividend growth rate of the S&P 500 from 1936 until now, and I’ll compare that to inflation.
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Timestamps:
00:00 Intro
01:10 Preferred shares
01:26 JPM common vs Preferred example
02:20 Info about preferreds
04:16 Priority/seniority
05:03 Credit risk
05:50 Impact on share counts
06:20 Voting rights
07:40 Who tends to offer them
08:02 Who usually wants them?
08:10 Pricing
08:20 Callable
09:50 Comparison to bonds
11:26 Cumulative vs non-cumulative
12:00 What types of investors benefit from them?
12:30 Are preferreds qualified income?
13:29 Convertible
14:39 Preferred share ticker naming insights
19:25 Why I’d want only a small % of preferreds (if any)
19:37 Example of their total returns which often are lacking
20:25 interesting data on long term dividend growth rates
23:05 Shoutouts & outro
Donate to St. Jude’s Children Hospital: stjude.org/donate/donate-to-st-jude.html?sc_icid=header-btn-donate-now
Please use my Amazon Affiliates Link before shopping on Amazon ➜ amzn.to/2YLxsiW (as an Amazon Associate I earn from qualifying purchases).
Please LIKE, COMMENT and SUBSCRIBE to support this channel - it helps me immensely! Also, please SHARE this video with your friends :) Thanks, I really appreciate it!
Investing Books to read (Amazon affiliate links):
The Intelligent Investor ➜ amzn.to/2WPwgtj
One Up on Wall Street ➜ amzn.to/2YTDAXt
Rich Dad, Poor Dad ➜ amzn.to/2SUCwOZ
The Richest Man in Babylon ➜ amzn.to/2SUHStw
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing ➜ amzn.to/2YUgjo4
The Bogleheads' Guide to Investing ➜ amzn.to/2STECPp
Attributions/SEO/Useful Links:
My Financial Modeling Prep affiliate link for awesome stock data (up to a 25% discount) ➡️
equitynet.com/blog/common-stock-vs-preferred-stock
pimco.com/resources/education/understanding-preferreds-and-capital-securities
https://www.poems.com.sg/glossary/stocks/callable-preferred-stock/
Disclaimer: I am not a financial adviser. These videos are for entertainment, inspiration, and educational purposes only. Investing of any kind involves risk. I am only sharing my opinion with no guarantee of gains or losses on investments. Please consult an appropriate adviser and do your own research before making any decisions on anything. I am not responsible or liable for any actions you take. The data shared may be inaccurate.
Copyright © 2025 GenExDividendInvestor. All rights reserved.
#Dividends #PreferredStock #PreferredShares
In this episode I’ll explain what preferred shares are, how they compare to stocks and bonds, their pros and cons, and whether they belong in a portfolio. I’ll end things by sharing some fascinating data from a dividend expert who analyzed the average dividend growth rate of the S&P 500 from 1936 until now, and I’ll compare that to inflation.
JOIN my channel membership to access new perks ➡️ youtube.com/channel/UCuOS-UH_s4KGhArN6HdRB0Q/join
Use my FAST Graphs Link and coupon code AFFILIATE25 to get 25% off your 1st payment for new signups ➡️ fastgraphs.com/?ref=GenExDividendInvestor
My Seeking Alpha Affiliate Link (benefits change overtime) ➡️ link.seekingalpha.com/2352ZCK/4G6SHH
Subscribe ➡️ youtube.com/c/GenExDividendInvestor?sub_confirmation=1
Share this Video ➡️ youtu.be/mUzNFdxHYxU
Watch this Video next ➡️ youtu.be/jP1ZNwSCmrQ
➡️ DIVIDEND DISCORD: discord.gg/kkSr5FY
➡️ TWITTER/X: twitter.com/GenExDividend
➡️ BLUESKY: https://bsky.app/profile/genexdividend.bsky.social
➡️ INSTAGRAM: instagram.com/genexdividendinvestor
➡️ PATREON: patreon.com/join/genexdividendinvestor
➡️ SOUNDCLOUD PODCAST: soundcloud.com/genexdividendinvestor
➡️ ITUNES PODCAST: podcasts.apple.com/us/podcast/genexdividendinvestor-podcasts/id1476933524
➡️ DIVIDEND MERCH (10% donated to St Jude): teespring.com/stores/genexdividendinvestor
➡️ REDDIT: reddit.com/user/GenXDividendInvestor
Timestamps:
00:00 Intro
01:10 Preferred shares
01:26 JPM common vs Preferred example
02:20 Info about preferreds
04:16 Priority/seniority
05:03 Credit risk
05:50 Impact on share counts
06:20 Voting rights
07:40 Who tends to offer them
08:02 Who usually wants them?
08:10 Pricing
08:20 Callable
09:50 Comparison to bonds
11:26 Cumulative vs non-cumulative
12:00 What types of investors benefit from them?
12:30 Are preferreds qualified income?
13:29 Convertible
14:39 Preferred share ticker naming insights
19:25 Why I’d want only a small % of preferreds (if any)
19:37 Example of their total returns which often are lacking
20:25 interesting data on long term dividend growth rates
23:05 Shoutouts & outro
Donate to St. Jude’s Children Hospital: stjude.org/donate/donate-to-st-jude.html?sc_icid=header-btn-donate-now
Please use my Amazon Affiliates Link before shopping on Amazon ➜ amzn.to/2YLxsiW (as an Amazon Associate I earn from qualifying purchases).
Please LIKE, COMMENT and SUBSCRIBE to support this channel - it helps me immensely! Also, please SHARE this video with your friends :) Thanks, I really appreciate it!
Investing Books to read (Amazon affiliate links):
The Intelligent Investor ➜ amzn.to/2WPwgtj
One Up on Wall Street ➜ amzn.to/2YTDAXt
Rich Dad, Poor Dad ➜ amzn.to/2SUCwOZ
The Richest Man in Babylon ➜ amzn.to/2SUHStw
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing ➜ amzn.to/2YUgjo4
The Bogleheads' Guide to Investing ➜ amzn.to/2STECPp
Attributions/SEO/Useful Links:
My Financial Modeling Prep affiliate link for awesome stock data (up to a 25% discount) ➡️
equitynet.com/blog/common-stock-vs-preferred-stock
pimco.com/resources/education/understanding-preferreds-and-capital-securities
https://www.poems.com.sg/glossary/stocks/callable-preferred-stock/
Disclaimer: I am not a financial adviser. These videos are for entertainment, inspiration, and educational purposes only. Investing of any kind involves risk. I am only sharing my opinion with no guarantee of gains or losses on investments. Please consult an appropriate adviser and do your own research before making any decisions on anything. I am not responsible or liable for any actions you take. The data shared may be inaccurate.
Copyright © 2025 GenExDividendInvestor. All rights reserved.
#Dividends #PreferredStock #PreferredShares
