Below, I focus on preferred stocks from REITs because of cash flows from their clients. Nevertheless, I call these speculative plays because of the depressed shape of the real estate market. In addition, because these issues are from REITs, their dividends are not eligible for the 15% tax rate, and are taxed as ordinary income. I also take care to mention those at or below par value or call price, which is the dollar amount that you get after the security reaches maturity. Generally speaking, you should avoid preferred stocks that trade significantly above par value, because you end up losing the gap between what you paid for and the par value or call price. With the Fed targeting 0%-0.25% for the federal funds rate and slowing global economic growth, you ought to consider the following:
BRE Properties (BRE) (Series D Cumulative)
Recent Price $25.32 per share
Callable? Yes, at
