Since the Great Recession ended, preferred stocks have outperformed most other types of equity investments and are near 5-year highs.
As the table shows the WIPSI significantly outperformed the Standard & Poors 500 Index in 2011, 2010 and 2009 and is still presenting investors with significantly higher dividend yields.
“While many investors feel that preferreds are an investment fad, I believe the rebirth of income investing is here to stay. Why? America’s aging population has lost much of its appetite for financial volatility and has chosen a fiscal course where investment income matters more than capital appreciation.
At Winans International, a key to our success in income investing is that we use mostly non-financial preferred stocks to enhance the overall performance of our client portfolios,” says Ken Winans President of Winans International and award-winning author of Preferred Stocks: The Art of Profitable Income Investing.
It is interesting to note that since 1900, preferred stocks have advanced annually 76% of the time, and have historically outperformed corporate bonds (7.6% vs. 6.5%). The Winans International Preferred Stock Index (symbol: WIPSI)™ is the only index that measures U.S. preferred stocks from 1900 to present.