Mer-k

[xpro6000]

A few weeks a go I found out about Mer-k which pays around 6.45% non-qualified dividend. This is not a regular stock. The price is always around $25 to $26. The only time the price dropped was in the recession.

What exactly is this? Is it safe to invest in it?

[crimsonghost747]

Sounds like preferred stock.
https://www.investopedia.com/terms/p/preferredstock.asp

In general yes they are safe to invest in but be sure to understand how this specific one works, if it's callable or convertible etc. Always know what you are getting yourself into.

[xpro6000]

(03-12-2019, 04:50 AM)crimsonghost747 Wrote: Sounds like preferred stock.
https://www.investopedia.com/terms/p/preferredstock.asp

In general yes they are safe to invest in but be sure to understand how this specific one works, if it's callable or convertible etc. Always know what you are getting yourself into.

Do you know why the price is always around $25? in some places the name also says 6.45% dividends. Where does the $25 price come from? It doesn't look like it's set by the market like other stocks.

[ChadR]

Preferred stocks stay around $25/share since that is their call amount.