Monday, June 13, 2011

Trust Preferred's over common

This is why I buy preferred. The chart below shows a price change of Bank of America common vs, the preferred H which we own. The common came off its bottom but paid no dividend and has been falling back from its peak. The preferred came back and paid 24.4% in dividends in addition to the price recovery.  This is a perfect example how being paid works.

Dan Perkins

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