Think of Preferred Shares as Gift Cards
ebook ∣ Buy Your Income at a Discount: Financial Freedom, #141 · Financial Freedom
By Joshua King
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Would you buy a $25 gift card for $20? The magic would be when you redeem it for $25.
What if you could receive dividends before you redeemed the gift card at a profit? That's the magic of preferred shares.
The typical par value of a preferred share is $25. You can find them at great prices like $18, $19, and $20.
Once you purchase them below par, you will start to receive dividends. Once the company decides to call the preferred share, it will pay you the par value of $25.
How amazing is this strategy? Preferred shares are one of my favorite types of income investing strategies. It could become one of yours, too. Good Luck!
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