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3 Super-Safe Preferred Stocks Providing Plentiful Payouts

These so-called 'hybrids' are too often ignored ... and considering their eye-popping yields, they shouldn't be

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Preferred Stocks to Buy: Public Storage Series T

preferred-stocks-public-storage-t-seriesDividend Yield: 6.58%

I also like both Public Storage (PSA) and its Series T preferred stock.

As a result of the financial crisis, many people lost their homes. What happens when people get evicted from a house? They downsize. That’s one reason we’ve seen apartment REIT stock prices appreciate, but that’s also why Public Storage has done so well. You can’t fit a household’s worth of stuff into an apartment, so you rent storage for all those extra-large sofas. Housing remains troubled, and with people increasingly being moved into part-time jobs or leaving the workforce, this overall secular trend is continuing.

Public Storage has 10 different series of preferred stock, but I like the Series T because it trades at $21.83, which is more than 12% below par. I don’t see any reason for this discount, and it also boosts the 5.75% dividend (at par) to 6.58% at the current price.

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