Introducing: The Bear Market Survival Guide
A LIVE, one-week-only boot camp led by seasoned trading expert Don Kaufman, kicking off Monday, April 7th at 9:30 AM ET. This isn't a webinar. This isn't a pre-recorded course. This is real-time, real-strategy, real-opportunity—right when you need it most. And you're in for just $7… | | | Preferred Stocks: The Billionaire's Best-Kept Income Secret
By Professor Jeff Bierman | Let me tell you something Wall Street won't. There's a powerful, overlooked asset hiding in plain sight—preferred stocks. And while you're chasing memes and momentum, guys like Warren Buffett and Jeff Bezos are quietly collecting checks. Big ones. Monthly, quarterly, guaranteed in some cases. | Preferred stocks aren't common shares with a fancy name. They're hybrids—part equity, part bond—with all the best features of both. They sit higher in the capital stack than common stock, which means if the company runs into trouble, preferred holders get paid before the equity crowd. They often come with cumulative dividends, meaning if a payment is skipped, it's owed to you. You don't lose it. You defer it—and get paid later. | Now listen: the reason Buffett owns preferreds is simple. He's not trying to time Tesla. He wants cash flow. Reliable, compounding income. Bezos? Same deal. His family office isn't YOLOing into crypto. They're locking in 7% and 8% annual returns, sleeping like babies while you stare at your screen sweating every tick. | Here's the good stuff. I'm not going to give you fluff. I'm going to give you names, symbols, and levels. I've done the homework. Dug through prospectuses, balance sheets, dividend history—so you don't have to. | Let's start with the Goldman Sachs Preferred Series K (Symbol: GS-K). This thing pays over 6%, floats after call, and Goldman ain't going anywhere. You want to own this around $21 to $23, ideally. Below $21? You back up the truck. That's a steal for the risk you're taking. | Next up: Bank of America Preferred Series E (BAC-E). Solid bank, rock-solid preferred. Yields north of 6.5%, and it's non-cumulative, but from a bank like BofA, you're fine. Your sweet spot? Buy it between $18.50 and $20. You're getting paid to wait, and if rates drop, this one could climb back to par. | Third: AT&T Preferred Series A (T-A). Now I know what you're thinking—AT&T? But the preferred is way safer than the common. Dividends are higher in the pecking order. Target $19–$21. It yields well over 6.5%, and while the common is a trainwreck, the preferred will get paid even if the exec team keeps making boneheaded acquisitions. | Here's a sleeper: NextEra Energy Capital Holdings Preferred Series I (NEE-I). This is clean energy with a regulated utility backbone. Safe as it gets. Buy it under $45. That's where the risk-reward gets tasty. Yield's around 6%, with low volatility and great coverage. | And if you want a tasty blend of food and finance? General Mills Preferred Series A (GIS-A). This is a tough one to find, but it's golden. Quality name, no flash, no drama. Buy it anywhere under $50, but if it ever dips below $47, you strike. This thing pays like clockwork. | Now, let's talk strategy. Preferreds are often callable, meaning the company can buy them back at a fixed price (usually $25 or $50 par) after a certain date. That's why you don't chase them above call value—ever. You get called out and stuck with cash just when you were getting comfortable. Always read the fine print—issue date, call terms, dividend resets. Treat them like bonds. Because they are bonds in disguise. | Use your broker's screeners—filter by credit quality (Moody's, Fitch, S&P), dividend yield, and sector. Look for investment-grade paper. If you're just throwing darts, you'll end up with garbage issued by companies that may never pay again. Stick with names that print money in good markets and bad. | Let me be blunt: while the retail crowd is getting rinsed chasing AI trades on margin, the billionaires are clipping 7–9% coupons without lifting a finger. No stress, no news watching, just cash flow. That's how wealth stays wealthy. | And if you're worried about market crashes, guess what? Preferreds often hold their value better than common stocks. Why? Because income is king. When the S&P drops 20%, you'll still be collecting that dividend—and your shares won't fall off a cliff. | So if you want to build a portfolio that pays you while you sleep, that doesn't give you a heart attack every Fed meeting, you need preferreds. Not as a maybe. As a mandate. | Start with the list above. Learn the language of preferreds. Look at yield-to-call, reset dates, cumulative status. You'll be amazed how much better you sleep at night. | Preferreds aren't flashy. They won't make you rich overnight. But they'll make you richer every month. And that's how the smart money plays. | Preferreds. Own 'em. Understand 'em. And let them pay you… while the rest of the market loses its mind. |
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