Common Stocks Vs Preferred Stock: Which is better?

Jeremy

Member
May 31, 2022
147
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Do you prefer dividends paid on common stocks to preferred stock dividends?
This is a tricky one. No answer is wrong or right here. It depends on the individual investor's preferences and goals. Some people prefer to receive dividends in the form of common stock because they believe that it is more advantageous to own shares of a company that is paying out dividends. Other investors might prefer to receive dividends in the form of preferred stock because it offers a higher dividend yield and typically has less risk than common stock.
 

Alex_BM

Member
Sep 10, 2022
108
0
16
Well, there are pros and cons to both common stock and preferred stock dividends. Common stock dividends are typically paid out of a company's profits, which can be reinvested back into the company to help it grow. Preferred stock dividends, on the other hand, are paid out before common stock dividends and are usually guaranteed.

This can make them a safer investment, but they may also offer less growth potential. In general, I prefer common stock dividends because they provide more flexibility and growth potential for the company. However, this may not be the best option for every individual investor, so it's important to weigh the pros and cons of each before making a decision.