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This is part of a series of a selection of articles written by Benjamin Graham between 1919 and 1922 for the Magazine of Wall Street.
In this article, Benjamin Graham is combing the market for attractive preferred stocks.
Benjamin Graham: Combing The Market For Attractive Preferred Stocks
Graham started his article by outlining the tax benefits of owning preferred issues, with attractive dividend yields in comparison to bonds. He notes that at the time, due to the additional tax burden placed on bond income, “an income of $1,000 from dividends was found to be equivalent to over $1,130 in corporation bond interest.” In this situation, preferred stocks offered a much better investment alternative for the “moderately well-to-do.”