When compared to corporate bonds,the dividend yield on preferred stocks is often _____the yield on bonds.
A)the same as
B)lower than
C)higher than
D)unrelated to
E)safer

Question

Quizplus · Accepted Answer

The dividend yield on preferred stocks is often higher than the yield on bonds because preferred dividends do not benefit from the tax deduction that interest payments on bonds do, leading issuers to offer higher yields to attract investors.

When Compared to Corporate Bonds,the Dividend Yield on Preferred Stocks