Fixed-to-Floating Preferred Stock

Fixed-to-floating preferred stock is preferred stock paying a fixed dividend rate for an initial period and a floating rate based on a benchmark afterward.

Why this matters to income investors

A future rate reset can change income and market value after the fixed period.

How to use fixed-to-floating preferred stock in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.