Preferred Stocks Outperformed Common Stocks in 2010, According to Winans International
NOVATO, Calif., Feb. 1, 2011 /PRNewswire/ -- For the second year in a row, preferred stocks have outperformed most other types of stock and bond investments and have retaken ground lost during the Great Recession.
Winans International Preferred Stock Index (WIPSI): |
||||
Current |
Total Return: |
|||
Price |
Yield |
2010 |
2009 |
|
23.68 |
6.9% |
30% |
39% |
|
Dow Jones Corporate Bond Average (DJCBA): |
||||
Current |
Total Return: |
|||
Price |
Yield |
2010 |
2009 |
|
110.8 |
3.8% |
6.0% |
18% |
|
Dow Jones Industrial Average (DJIA): |
||||
Current |
Total Return: |
|||
Price |
Yield |
2010 |
2009 |
|
11,892 |
2.4% |
14% |
26% |
|
As the table shows the WIPSI significantly outperformed Dow Jones' Corporate Bond & Industrial Averages in 2009 and 2010. Currently, it is still presenting investors with significantly higher yields.
"While many investors feel that this is an investment fad, I believe the rebirth of income investing is here to stay. Why? America's aging population has lost much of its appetite for financial volatility and has chosen a fiscal course where investment income matters as much as capital appreciation. At Winans International, a key to our success in income investing is that we use preferred stocks to enhance overall performance," says Ken Winans President of Winans International and author of Preferred Stocks – The Art of Profitable Income Investing.
It is interesting to note that since 1900, preferred stocks have advanced annually 76% of the time, and have historically outperformed corporate bonds (7.6% vs. 6.5%).
The Winans International Preferred Stock Index (WIPSI) ™ is the only index that measures U.S. preferred stocks from 1900 to present.
More information on the Winans International Preferred Stock Index can be found at www.winansintl.com. WIPSI charts and data can be purchased from www.globalfinancialdata.com and www.srcstockcharts.com
SOURCE Winans International
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