Investment guide on cumulative preferred utility stocks
Sam Shulsky analyzes advantages of a single retiree buying cumulative preferred utility shares offering about 8 to 8.5 percent yields. He cites examples from Consolidated Edison, Cincinnati Gas and Electric, Duquesne Light, Pacific Gas and Electric, and Southern California Edison, noting ratings, call risk, and non callable issues. He warns that declines in interest rates can raise prices toward call prices and emphasizes income safety with preferreds ahead of common dividends.