On a different note, there is some tax magic to their preferred stocks, I think all 4 are classified as ROC (Return of Capital)....
So that means if you invest $100 and are getting 10% annually, the first ~10 years are "tax free" since you are just recouping your initial investment money. After year 10 you would start being taxed at long-term capital rates....this is in contrast to normal dividend producing instruments which are taxed at ordinary income rates.
So the real "upside" with these products is if the product continues to exist in more than 10 years, since you would get all your capital back and then would start earning above market dividends but would be taxed at LTCG rates which may be 1/2 of normal rates....
On a different note, there is some tax magic to their preferred stocks, I think all 4 are classified as ROC (Return of Capital)....
So that means if you invest $100 and are getting 10% annually, the first ~10 years are "tax free" since you are just recouping your initial investment money. After year 10 you would start being taxed at long-term capital rates....this is in contrast to normal dividend producing instruments which are taxed at ordinary income rates.
So the real "upside" with these products is if the product continues to exist in more than 10 years, since you would get all your capital back and then would start earning above market dividends but would be taxed at LTCG rates which may be 1/2 of normal rates....