And I've got just the ticket — that fund I mentioned earlier, which is throwing off a gaudy 7.4 % dividend now, trades at a nice discount (more on that below) and has delivered a stellar return with much less
volatility than common stocks.
Not exact matches
Looking at the short term
volatility rather
than the long time development of
stock is according to Warren Buffet one of the most
common mistakes among investors on all levels.
Their dividends are usually qualified dividends, which get taxed at a lower tax rate, their yield is usually higher
than common stock yields, and they may provide less share price
volatility.
Though this is a positive, it is important to note that Stovall also found that preferred
stocks experienced a higher level of
volatility than bonds or
common stock, as is shown in the table below.
Although subject to the risks of
common stocks, low
volatility stocks are seen as having a lower risk profile
than the overall markets.