Preferred stock is a class of ownership in a corporation that generally has a higher priority claim on the company's assets and/or earnings than does common stock. It is often considered a fixed income alternative because it typically pays a fixed dividend to shareholders.
Preferred Stock May Provide:
Greater Capital Preservation than Common Stock1
- Common stock provides a buffer for possible impairments to the value of preferred stock
- Share price of Preferred stock does not fluctuate with market movements
Current Income2
- Dividend payments are typically paid monthly or quarterly
Dividend Priority
- Generally preferred shareholders are entitled to receive dividends before common shareholders and have priority rights with regard to payments in the event of a liquidation of the company.
1)Holders of CMCT Preferred Stock will be subject to inflation risk and the risk that interest rates may increase.
2)Dividends are not guaranteed and may be decreased or suspended altogether at CMCT's discretion.