Best Preferred Stocks to Invest In for 2024

When it comes to investing in stocks, preferred stocks can offer a range of benefits, from stable income to lower volatility compared to common stocks. In 2024, investors are looking for reliable preferred stocks that provide strong dividends and financial stability. Here is an in-depth guide to some of the best preferred stocks you should consider for your investment portfolio this year.

1. Bank of America Corporation Series L Preferred Stock (BAC-L)

• Overview: Bank of America is one of the largest financial institutions in the world, and its preferred stock series L provides a strong dividend yield.
• Dividend Yield: Approximately 5.8%
• Key Features: Fixed dividend payments, callable after a certain date.
• Why Consider: Bank of America’s preferred stock benefits from the bank's strong financial position and profitability. It’s an excellent choice for investors looking for stability in the financial sector.

2. JPMorgan Chase & Co. Series J Preferred Stock (JPM-J)

• Overview: JPMorgan Chase is another major player in the banking sector, and its Series J preferred stock is known for its reliable dividend payments.
• Dividend Yield: Approximately 5.6%
• Key Features: Cumulative dividends, callable after a specific date.
• Why Consider: JPMorgan Chase's Series J preferred stock offers consistent income and benefits from the bank’s solid performance and market position.

3. Wells Fargo & Co. Series L Preferred Stock (WFC-L)

• Overview: Wells Fargo’s Series L preferred stock provides a stable income stream and is backed by a well-established financial institution.
• Dividend Yield: Approximately 5.7%
• Key Features: Fixed dividend rate, cumulative dividends.
• Why Consider: Wells Fargo has been working on improving its reputation and financial health, making its preferred stock a relatively safe bet.

4. Public Storage Series F Preferred Stock (PSA-F)

• Overview: Public Storage is a leading provider in the self-storage industry, and its Series F preferred stock offers a stable dividend.
• Dividend Yield: Approximately 4.8%
• Key Features: Fixed dividend payments, callable after a certain date.
• Why Consider: With a strong position in the storage market, Public Storage provides a reliable income source with lower volatility.

5. Verizon Communications Inc. Series C Preferred Stock (VZ-C)

• Overview: Verizon is a major telecommunications company, and its Series C preferred stock is a solid choice for steady income.
• Dividend Yield: Approximately 5.4%
• Key Features: Cumulative dividends, callable after a specific date.
• Why Consider: Verizon’s preferred stock offers a stable dividend backed by a strong company in the essential telecommunications sector.

6. Duke Energy Corporation Series D Preferred Stock (DUK-D)

• Overview: Duke Energy is a prominent utility company, and its Series D preferred stock provides a reliable dividend yield.
• Dividend Yield: Approximately 5.5%
• Key Features: Fixed dividend payments, callable after a certain date.
• Why Consider: Duke Energy’s preferred stock is supported by the utility sector’s stable demand, making it a good choice for conservative investors.

7. AT&T Inc. Series D Preferred Stock (T-D)

• Overview: AT&T’s Series D preferred stock is another strong option for investors seeking reliable dividends.
• Dividend Yield: Approximately 5.3%
• Key Features: Cumulative dividends, callable after a specific date.
• Why Consider: Despite recent challenges, AT&T’s preferred stock remains a viable investment for those seeking steady income.

8. Citigroup Inc. Series J Preferred Stock (C-J)

• Overview: Citigroup’s Series J preferred stock offers a decent dividend yield and benefits from the bank’s extensive global reach.
• Dividend Yield: Approximately 5.7%
• Key Features: Fixed dividend payments, callable after a certain date.
• Why Consider: Citigroup’s strong global presence and recovery prospects make its preferred stock a worthwhile consideration.

9. IBM Corporation Series D Preferred Stock (IBM-D)

• Overview: IBM’s Series D preferred stock provides a stable dividend and is backed by a technology giant.
• Dividend Yield: Approximately 5.2%
• Key Features: Cumulative dividends, callable after a specific date.
• Why Consider: IBM’s preferred stock offers a reliable income stream supported by a well-established tech company.

10. General Electric Company Series D Preferred Stock (GE-D)

• Overview: General Electric’s Series D preferred stock provides a solid dividend yield and benefits from the company’s diversified operations.
• Dividend Yield: Approximately 5.1%
• Key Features: Fixed dividend payments, callable after a certain date.
• Why Consider: GE’s diversified portfolio and commitment to improving its financial position make its preferred stock an attractive option.

Conclusion Investing in preferred stocks can be a great way to secure steady income while minimizing risk. The stocks listed above represent some of the best options available in 2024, each offering unique benefits based on their issuing company’s financial health and market position. Before making any investment decisions, it's essential to consider your financial goals and consult with a financial advisor to ensure these stocks align with your overall strategy.