In the past I have only purchased preferred stock if I thought it was a "special situation", ie for a trade.
Recently (over the last 6 months) I have been buying preferred stock (and some exchange traded debt) for income. I was lucky enough to have built up a dividend stock portfolio since 2008, and many of the stocks that I purchased for their 4 and 5% yields are now yielding 3% (and I have unrealized capital gains). I like the idea of getting a 6% or 7% yield from a strong company, or even a higher yield from a shakier company. This is an allocation; I am not moving everything out of common stocks into preferred. So far I own, MWR, DUKH (debt), RBS.PI, CWH.PD, AGM.PD (recent purchase), and STI.PE. Some of these have moved up in price since purchase. I bought and sold CPA.PA without even receiving a fat 10% dividend because the price ran up to my target.
Just wondering if anyone else is using preferred stock to generate income in their portfolio. If the dividends are eligible for 15% tax treatment I hold them in my brokerage account. If not, like the exchange traded debt, they go in my IRA.