I use preferred for 5-8% of a portfolio for clients; another 10-15% in MLPs, 40-50% in institutonal quality senior debt with 5-6% yields and...
I would suspect your friend bought in March or April, when preferred were trading at all time discounts. They typically trade between...
You want to look for a debt to equity ratio below .8, significant free cash flow, a history of sustainable dividends amd the ability to pay these...
You may want to look at quantumonline.com and preferredstockinvesting.com, the latter being a link to his book. The former is quite a good...
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