# Preference Shares - Income Alternative **URL:** \ **Category:** đź“Š Investing\ **Created:** [March 13, 2023, 7:16pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960 "2023-03-13T19:16:47Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\ **Post date:** [March 13, 2023, 7:16pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960/1 "2023-03-13T19:16:47Z")
Just wondering if there are interesting **Preference Shares** that can be a kind of income alternative to bonds, as T212 is unable to provide fixed income instruments (e.g. bonds) and excluding ETFs, ITs or high yield dividend paying stocks. It would be interesting, if the community could share preference shares denominated in several currencies (USD, EUR, GBP) and from different economic sectors and countries to better diversify the source of income. **@T212** , a suggestion, maybe creating a new category in the Search tab, about “Preference Shares” (similar to existent “Growth” or “Dividend”)? ---
**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\ **Post date:** [March 13, 2023, 8:04pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960/2 "2023-03-13T20:04:00Z")
**UK/GBP preference shares includes:** > **[The highest-yielding Pibs and preference shares | MoneyWeek](https://moneyweek.com/investments/stocks-and-shares/share-tips/605082/the-highest-yielding-pibs-and-preference-shares)** > > As well as ordinary shares, companies and other institutions issue preference shares and permanent interest-bearing shares (Pibs), which act more like fixed income securities. Rupert Hargreaves explains everything you need to know, and lists the... **US/USD preference shares:** > **[List of Preferred Stocks](https://stockmarketmba.com/listofpreferredstocks.php)** > > List of U.S. publicly traded preferred stocks **EUR preference shares includes:** - Germany: Porsche, VW, BMW ---
**Author:** ![1anrs](https://avatars.discourse-cdn.com/v4/letter/1/b782af/32.png) [@1anrs](https://community.trading212.com/u/1anrs)\ **Post date:** [May 16, 2023, 4:42pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960/3 "2023-05-16T16:42:04Z")
Further to this useful thread, and thank you to RLX for posting that article, I’m wondering if anyone believes there to be any advantage to preference shares? Ordinary shares have the obvious advantages that you own part of the company, the dividends can go up when times are good (although obv the reverse is also true) and that even if they don’t go up by that much, most companies seem to modestly adjust by inflation. Preference shares on the other hand seem to be fixed, not even adjusting for inflation. I know that their fixed nature is the whole point, however, other than the fact that they cannot be cut or cancelled, is there any advantage to them at all? Taking Aviva Plc - 8.75% PRF (AV.A) as an example, they’ve been paying 4.375p per share twice annually since 2012. 4.375p today is obviously worth a lot less than it was 11 years ago. ---
**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\ **Post date:** [May 16, 2023, 6:15pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960/4 "2023-05-16T18:15:42Z")
In fact, preference shares/stocks can have the dividends temporary cancelled, it depends of their prospect and categories of preference shares. Generally it’s due to special situations. The four categories of preference shares: - [Cumulative preferred stock](https://www.investopedia.com/terms/c/cumulative_preferred_stock.asp) - Non-cumulative preferred stock - [Participating preferred stock](https://www.investopedia.com/terms/p/participatingpreferredstock.asp) - Convertible preferred stock > **[What Are Preference Shares and What Are the Types of Preferred Stock?](https://www.investopedia.com/terms/p/preference-shares.asp)** > > Preference shares are company stock with dividends that are paid to shareholders before common stock dividends are paid out. Financial institutions instruments, more specifically any type of bank shares and debt are very sensitive to special legislation/regulation and situations. ---
**Author:** ![1anrs](https://avatars.discourse-cdn.com/v4/letter/1/b782af/32.png) [@1anrs](https://community.trading212.com/u/1anrs)\ **Post date:** [May 16, 2023, 6:36pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960/5 "2023-05-16T18:36:27Z")
> [@RLX](#): > > preference shares/stocks can have the dividends temporary cancelled Thanks again, so potentially even more disadvantageous then. ---
**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\ **Post date:** [May 16, 2023, 7:16pm UTC](https://community.trading212.com/t/preference-shares-income-alternative/60960/6 "2023-05-16T19:16:21Z")
If they are [Cumulative preferred stock](https://www.investopedia.com/terms/c/cumulative_preferred_stock.asp), the shareholder will receive the dividends not paid in the past, plus interest income on the delayed dividends if applicable.