December 22, 2020 On Monday, popular brokerage app Robinhood, which has risen to notoriety among younger, tech-savvy investors this year, said it will no longer offer some favored income-generating asset classes starting next month. “Robinhood said that after Jan. 11, 2021, customers can no longer buy closed-end funds, limited partnerships, master limited partnerships (MLPs), royalty trusts, tracking stocks, New York registry shares, and units,” reports Avi Salzman for In today’s low-yield climate, investors shouldn’t be locked out of accessing preferreds. The Robinhood Aside, PREF Still Matters Preferred stocks, including those residing in PREF, are hybrid securities due to their combined debt and equity attributes. The securities are senior to common equity and junior to senior debt in the capital structure. They are issued by financial institutions, energy companies, utilities, and telecom companies, among others. Additionally, preferred stocks issue dividends regularly, but investors don’t usually enjoy capital appreciation on par with common shares.