How to Find and Identify Preferred Stock Listings

Locating and identifying preferred stock can seem complex for those new to financial markets. This article simplifies the process by guiding readers through discovering these securities. It also details specific characteristics and indicators that help distinguish preferred stock from other investment types within financial listings.

Key Characteristics of Preferred Stock

Preferred stock represents a unique class of ownership in a company, differing from common stock. A primary characteristic is the fixed dividend payment, which must be paid before any dividends are distributed to common stockholders. This dividend rate is usually expressed as a percentage of the stock’s par value.

Holders of preferred stock generally receive priority over common stockholders in the event of a company’s liquidation. Preferred shareholders would be paid back their investment before common shareholders receive any distribution. However, preferred stock typically does not carry voting rights.

Some preferred stocks are “cumulative,” meaning that if the company misses a dividend payment, the unpaid dividends accumulate and must be paid to preferred shareholders before any common stock dividends can be distributed. “Non-cumulative” preferred stock, conversely, does not accumulate missed dividends, and those payments are lost. Many preferred stocks are “callable,” allowing the issuing company to repurchase the shares at a predetermined price after a specific date.

Online Platforms for Preferred Stock Discovery

Most online brokerage platforms provide tools that allow users to search for preferred stock offerings. These platforms often include dedicated sections or filters to isolate preferred shares from common stock.

Major financial news websites and dedicated financial data providers also serve as resources for preferred stock information. Many of these sites offer comprehensive databases or screening tools that aggregate data from various exchanges. These tools can be particularly useful for identifying new issues or tracking the performance of existing preferred shares across the market.

Beyond general financial sites, specialized preferred stock screeners exist to filter preferred securities based on a wide range of criteria. For new offerings, a company’s own investor relations pages on their corporate website may provide direct information about their preferred stock issuance.

Identifying Preferred Stock in Listings

Identifying preferred stock requires attention to specific naming conventions and data points. Preferred stock ticker symbols often distinguish themselves from common stock by including suffixes such as “P,” “.PR,” or other specific letters after the company’s primary ticker symbol. For instance, a common stock might trade as “XYZ,” while its preferred counterpart could be “XYZ-P” or “XYZ.PR.”

Beyond ticker symbols, common terms or labels in the company name or security description indicate a preferred stock. These often include abbreviations like “Pfd,” “Prf,” or designations such as “Series A,” “Series B,” indicating different classes of preferred shares. These labels are typically displayed alongside the company name in the listing.

When examining a listing, several data fields confirm it is preferred stock. Look for explicit mentions of a “fixed dividend yield” or a stated dividend rate. The “par value” of the stock is also frequently listed, often at $25 or $100 per share. The listing will often specify whether the preferred stock is “cumulative” or “non-cumulative,” and if it has a “callable” feature. Using a screener, inputting criteria such as “security type: preferred” or filtering by dividend characteristics can quickly narrow down relevant listings.