Who should buy convertible stock?
You might consider buying convertible stock if you are looking for conservative income with a potential for growth. With convertible stock, you can capitalize on the growth of the underlying common stock shares by converting or you can sit tight on the income that is produced and not convert. It’s like having your cake and eating it, too. Convertible stock allows you to play both sides of the fence. However, be aware that for a strict income investment, its dividend is usually less than a straight preferred stock.
