Generally, the receipt of corporate bond interest is more valuable than preferred dividends to corporate investors.

Name: Generally, the receipt of corporate bond interest is more valuable than preferred dividends to corporate investors.
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Corporate investors often find preferred dividends more valuable due to the Dividends Received Deduction (DRD), which allows them to exclude a portion of dividends received from their taxable income, whereas interest income from corporate bonds is fully taxable.

Generally, the Receipt of Corporate Bond Interest Is More Valuable