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Discussion Starter #1 (Edited)
I have read on a few blogs about the wonderful advantages of preferred stocks. I own some Claymore Canadian Dividend (CDZ), which I understand does not hold 'preferred' stocks. Is this correct? They have another fund (CPD) that states it holds specifically dividend paying preferreds. Comparing the returns over the past couple of years, including how the funds reacted in the downturn, I don't see the 'advantage' to owning a fund with preferreds. Any comments?
 

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I think the advantage of preferred is if a stock goes bankrupt
To Expand on Mode's, normally for a preferred to have its dividend cut/reduced the common stock would have to have its dividend completely removed first. So there is a certain amount of buffer there.
 
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