Preferred Stocks Outperformed Common Stocks in 2009

Jan 12, 2010, 15:10 ET from Winans International

NOVATO, Calif., Jan. 12 /PRNewswire/ -- After taking one of its worst hits on record in 2008, preferred stocks are providing a bright spot to an uncertain investment picture. In fact, they were one of the best performing investments in 2009.

Winans International Preferred Stock Index (WIPSI):







YE 2009

$Chg

$Chg

Current


Price

12-Months

24-Months

Yield







19.28   

26.8%

-5.4%

8.39%






Dow Jones Corporate Bond Average (DJCBA):







YE 2009

$Chg

$Chg

Current


Price

12-month

24-Month

Yield







108.08   

11.0%

6.0%

4.48%






Dow Jones Industrial Average (DJIA):







YE 2009

$Chg

$Chg

Current


Price

12-Month

24-Month

Yield







10,428   

18.8%

-21.4%

2.62%


As the table shows the WIPSI significantly outperformed Dow Jones' Corporate Bond & Industrial Averages in 2009 and is still presenting investors with significantly higher yields.

"The performance in preferred stocks is not a surprise when you consider that in 2008 these securities were at valuations we haven't seen in 108 years, and preferred stocks rarely have consecutive negative years. At Winans International, a key to our success in income investing is that we use preferred stocks to enhance overall performance," says Ken Winans creator of the WIPSI and author of the award-winning book "Preferreds."

It is interesting to note that since 1900, preferred stocks have advanced annually 75% of the time, and have historically outperformed corporate bonds (7.43% vs. 6.45%).

The Winans International Preferred Stock Index (WIPSI) measures U.S. preferred stock prices and yields from 1900 to present day. More information on the Winans International Preferred Stock Index (WIPSI) can be found at: www.winansintl.com, www.preferredsthebook.com. Data can be purchased from www.globalfinancialdata.com.

SOURCE Winans International



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