We learn about preferred stock in this unit. This is an example of a perpetuity that we discussed in a previous unit because it pays a dividend regularly for as long as the stockholder owns the stock.
Find an article or research the finance pages (Yahoo, Marketwatch, etc.) and find a preferred stock investment that you would think would be a good investment.
Many common stocks do not pay a dividend and the stockholder gets a return on their investment because the stock’s share price continues to go up with inflation and company growth. These are called growth stocks. We discussed that Coca-Cola has historically had one of the best growth stocks to invest in for decades. Do some research and find some other companies with profitable common stock to invest in that has provided continuous growth.
What industries typically have stocks that are stable (fairly low risk) and also offers consistent growth in share price?