Higher rates are attracting more individual investors to the preferred stock market because yields have risen nearly two percentage points this year to a range of 6% to 8%.
Most investors focus on bank preferreds since financial companies such as
JPMorgan Chase
(ticker: JPM),
Bank of America
(BAC), and
Wells Fargo
(WFC) are the main issuers in the $350 billion market. The bank preferreds now yield around 6%.
