Additionally, preferred stocks issue dividends on a regular basis, but investors don’t usually enjoy capital appreciation on par with common shares. PREF is increasingly relevant today because conservative fixed income investments, including Treasuries and municipal bonds, sport yields at or near historic lows. With preferred dividends, broadly speaking, looking safe and the higher yields offered by the asset, PREF can act not only as a income-generating tool, but a long-term inflation fighter as well.