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Preferred Stock Investing, 5th Ed. [Paperback]

by Doug K. Le Du
4.4 out of 5 stars  See all reviews (74 customer reviews)

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Book Description

July 19, 2013 1601451636 978-1601451637 5th
This latest edition of Preferred Stock Investing shows you how to screen, buy and sell the highest quality preferred stocks to earn above average dividend income while creating multiple downstream capital gain opportunities.

Income investors already know about Doug K. Le Du’s widely published preferred stock research articles and newsletters. Doug writes in plain English for non-experts. And now his latest preferred stock research is available in Preferred Stock Investing.

This completely updated edition includes Doug’s latest research and updated charts and examples using real preferred stocks. This edition has been completely re-written to focus on the buying conditions that we will be facing over the next two years.

Preferred Stock Investing starts at the beginning, explaining what preferred stocks are, the three different types and the pros and cons of investing in them versus common stocks, bonds or bank Certificates of Deposits. From there, Preferred Stock Investing uses actual preferred stocks to show you how to screen, buy and sell the highest quality issues.

Also, through the book's website readers of Preferred Stock Investing are supported by a wealth of continuously updated resources, including a free monthly preferred stock research newsletter. Preferred Stock Investing lists all qualifying preferred stocks that have been issued since January 2001 and shows you the actual results that you would have had by following the preferred stock investing method described throughout the book.

The information presented within Preferred Stock Investing makes it very clear that the highest quality preferred stocks represent one of the best investment opportunities for individual investors.

Frequently Bought Together

Preferred Stock Investing, 5th Ed. + Investing In Preferred Stock: An Introduction For Modern Income Investors (2nd Edition) + The Preferred Way: Amazing Unique Way to Increase Dividends, Cash and Wealth
Price for all three: $42.51

Buy the selected items together

Editorial Reviews


"I am very happy with the CDx3 method. I used to put my longer term money into CD's and government agency debt. Now I buy preferred stocks from the CDx3 Bargain Table. It's a perfect fit!" –Carl Jensen, Futures Trader

"I'm doing super with the CDx3 system." –Don Cummings, Private Investor

About the Author

Doug K. Le Du is a preferred stock researcher. His initial research regarding the market price behavior of preferred stocks was published in a 2003 research paper with the first edition of Preferred Stock Investing following in 2006. Doug also publishes two monthly preferred stock research newsletters - the CDx3 Newsletter and CDx3 Research Notes.

Product Details

  • Paperback: 334 pages
  • Publisher:, Inc.; 5th edition (July 19, 2013)
  • Language: English
  • ISBN-10: 1601451636
  • ISBN-13: 978-1601451637
  • Product Dimensions: 9 x 6 x 0.8 inches
  • Shipping Weight: 1 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (74 customer reviews)
  • Amazon Best Sellers Rank: #192,946 in Books (See Top 100 in Books)

More About the Author

Doug K. Le Du is a preferred stock researcher and author of the book titled Preferred Stock Investing.

High quality preferred stocks are one of the best, but most underrepresented, investment opportunities available to individual investors.

As 70 million Americans have now started retiring, high quality preferred stocks can provide respectable returns at acceptable risk for many investors. And yet, opportunities go by due to a general lack of information about how to select, buy and sell the highest quality issues.

Doug publishes two monthly newsletters that describe his ongoing preferred stock research. Between newsletters Doug also publishes timely observations about the marketplace for preferred stocks on his blog.

You can sign up for one of Doug's monthly preferred stock research newsletters (free) or access Doug's blog from his web site at

Doug's academic background is in economics and statistics. Doug retired from his position as Managing Director at one of the world's largest management consulting firms in 2002 to focus on preferred stock research. Doug does not sell preferred stocks nor is he a stock broker or financial adviser. As a researcher, Doug researches the market price behavior of the highest quality preferred stocks and writes to you about his observations.

Customer Reviews

Most Helpful Customer Reviews
71 of 76 people found the following review helpful
By C. Wang
This is a good book but reader needs to be careful about the risk
involved in preferred stock investing. Half of the purchases made
by the author in 2006 was not sold yet, and as of Apr 27, these shares
are down on average about 15% in market value. Even if you count the
9-10% in dividends that had been paid, you are probably still 5-6%
underwater. One of the purchases is CFC-B, which went from 25 to 6
at one point only to come back to 14 as of Apr 27. I am not sure
if the average reader would have the stomach to withstand this kind
of draw down. Since many preferred stocks were issued by finance
companies, I suspect purchase made by the author prior to Aug 2007
may suffer even heavier paper losses.

Reader who buy this book with the expectation of getting 12% return
with very little risk and retire needs to be realistic
I have many stock trading systems that returned on avg of 30% for 6-7
years in back testing before Aug 2007 but are down 40% since then.

I would like to see more discussion on the risk of perferred stocks,
how they would perform in bankrupcy and liquidation, etc. Readers
also should not blindly follow rating agency's ratings.

Thorburg mortgage's preferred stocks went public last year with a 10%
coupon, and the price dropped from $25 all the way below $2 and has
come back to over $4 recently. I heard that Pimco's Bill Gross
bought some of those preferred below $2. It would be interesting to
understand how he analyzed the risk of TMA's preferred and made the
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52 of 60 people found the following review helpful
1.0 out of 5 stars Misleading! March 18, 2008
This book's advice is misleading, and this is unfortunate given that it's one of the only publications available on preferred stocks.

1. The author fails to point out the major underlying risks of preferred securities. Preferreds are only one step above regular stocks in credit safety, should the issuing firm declare bankruptcy. Firms that issue preferreds can and do fail, often wiping out the preferred investors. And yet the author suggests that the risk of preferreds is "CD-like" (FDIC insured up to $100,000) throughout the book. Not true!

2. The author conveniently ignores the reverse "cannonball" price curve in his visual graphics, thereby implying that most preferreds rise in price after issuance and then recede back down to par at the redemption or call date. When rates rise and/or the issuing firm suffers in performance (think Countrywide!) prices will fall and may stay low, NOT recovering to par at the first call date. An investor may not be able to "upgrade" without a loss. Again, the author is not being truthful about what actually can of often does occur.

3. The author fails to point out that investors can often purchase preferreds at well below par, taking advantage of market price drops when the issuer's health has not deteriorated. By acquiring only at/near IPO prices, investors who follow his advice may severely limit their upside.

4. The book reads like one long, and cheesy infomercial peddling the author's "subscriber" services. If you want to avoid the pain of losing money in preferred stocks: don't buy this misleading book or his services!
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28 of 31 people found the following review helpful
5.0 out of 5 stars An easy to understand, easy to impliment system October 2, 2007
Format:Paperback|Verified Purchase
Several things struck me about Preferred Stock Investing. Doug K. Le Du's writing style leaves you feeling like you're reading something from an old friend. The book is very comfortable to read and easy to understand. But the most remarkable part is how frequently I found myself feeling like "ah hah, of course this would work this way." Unlike many other investment books that I've read, it is really clear how and why the preferred stock investment method that is described in the book would work, with very little effort. And all of the preferred stocks for years listed in the book too so you don't have to take it on blind faith; the book includes the investment results, using the method that the book describes. In the beginning of the book, the author says that if you are a high-risk taking day trader looking for a quick 25% return, this book is not for you; this is correct. This book is for low-risk, methodical investors who do not want to spend a lot of time studying their computer all the time. I learn a lot and it was fun to read.
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18 of 19 people found the following review helpful
2.0 out of 5 stars Misleading and pushy January 13, 2011
Format:Paperback|Verified Purchase
1. This book is a giant advertisement. 90% of this book is just an infomercial for his CDx3 subscription service. Excerpt " Unless you are a subscriber to the CDx3 Notification Service (in which case this research is done for you), figuring out ______ can be a bit time consuming (not to mention tedious)." That's the tone of the whole book - "here's the information (which coincidentally my other service already provides to subscribers), and here's a time consuming way to figure it out for everyone else."

2. Direct quote: "One thing you can say about a period of increasing interest rates is that it is ALWAYS followed by a period of decreasing rates." He proves this point by showing a graph of rates from the 80's - 2009, which trended downwards the whole time. If interest rates start trending up over the next 30 years, everyone buying his preferreds will get stuck with lower than market yields and no capital appreciation as there would be no reason to call them.

3. He neglects to inform you about quantumonline, which he throws in the "pay service sites" category. Quantum is by far the biggest resource of free information on preferreds and provides much of the information he claims is hard to find anywhere outside his service.

Summary: It's an ok primer, but oversimplifies the risks and spends most of the book pushing his subscription service. You'd be better off going with Paul Joseph's book, which gives you the same basic information and a better awareness of risks.
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Most Recent Customer Reviews
5.0 out of 5 stars Great introduction to the world of preferred stocks
Though I am an inexperienced investor, I knew next to nothing about the intricacies of preferred stock investing. Read more
Published 2 months ago by Donald Cullen
4.0 out of 5 stars Good explaination of preferred stock investing
If you are new to Preferred stock investing this is a good place to start. Doug explains things well and has some sound advice in the form of rules to invest by that will keep you... Read more
Published 2 months ago by Thomas Warnock
3.0 out of 5 stars Good Book But Beware of The Sales Pitch
Overall I think this is a good book to introduce the details on getting into the preferred shares markets. Read more
Published 2 months ago by MikeO3
5.0 out of 5 stars Excellent Book on Investing
Mr. Le Du's book is the best book I have read on preferred stocks. It is well written and easily understood. Read more
Published 3 months ago by William E. McArthur
5.0 out of 5 stars A must read for preferred stock investors
Easy read, very informative and an eye opener on how to invest with preferred stocks. Change my whole investing method for income flow.
Published 4 months ago by Jimmy W. Tippit
5.0 out of 5 stars Perferred Stock Investing Review
This book was quite helpful in making a decision as to whether perferred stocks had a place in my investment portfolio. Read more
Published 5 months ago by KGohring
5.0 out of 5 stars Very pleased with this purchase and the dividends are rolling in!!
Doug's book guides you through the preferred stock market without jargon or complex calculations. It covers pricing and its effect on yield, the important characteristics to... Read more
Published 7 months ago by Kyle S.
5.0 out of 5 stars Good book
I am reviewing the 5th edition which came out July, 2013. I am retired and primarily interested in fixed income. Read more
Published 7 months ago by Jim Rogers
5.0 out of 5 stars CDX3 Income Engiine Preferred Stock Investing Doug le duc
Excellent book...Knowledge is power...The Author is able to teach by identifying the basic strategy with examples. Read more
Published 7 months ago by socalwlv
4.0 out of 5 stars Well-written, informative, easy read
Preferred stocks are a little-known corner of the investing universe, and this book taught me quite a bit about them. Read more
Published 10 months ago by David Levner
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