I would love this stock for income. Is there room for appreciation, too?

I am thinking of buying the FPL Preferred for income. I am wondering if the stock price will go up, too.

Answers

Creezy answered a question in General Market.
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Creezy answered 7 months ago …

I think for this particular investment you'd only be looking for income. Here's why: there's very little correlation between the price movement of the preferred stock and the common stock. Check out this comparison chart on Yahoo! Finance:

http://finance.yahoo.com/q/bc?t=2y&s=FGE&l=on&z=m&q=l& c=FPL

As you can see the preferred has barely moved while the common has gotten hit hard. While this does mean that your downside will be somewhat protected, it also means you won't see the type of upside your looking for either.

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