FYI: Looking for cash flow in a taxable account? Consider preferred stocks—but first get a reading on their “qualified dividend income.”
J.P. Morgan Chase pays a good dividend, yielding just over 3% on the common shares. Not good enough? You can get more. JPM has some uncommon shares yielding well above 5%.
We’re talking about preferred stock, that very unfashionable kind of equity that pays a fixed dividend and thus acts a lot like a bond. If you need investments with a high payout, preferreds are worth a look. And if you are investing in a taxable account, they are worth a close look. Some of them pay dividends qualifying for a reduced federal tax rate; many don’t.
Regards,
Ted
https://www.forbes.com/sites/baldwin/2019/02/19/high-dividends-low-taxes-a-careful-investors-guide-to-preferred-stocks/#34bc9204423c
