If you’re building a portfolio focused on steady cash flow, preferred stocks can be a powerful addition. They typically offer higher yields than common stocks and often provide more predictable dividends. For income investors seeking reliable returns, the right preferred shares can deliver attractive yields with relatively lower volatility. Below are 10 of the top preferred stocks for income investors in 2026, each known for strong issuers, solid fundamentals, and consistent payouts.
1. JPMorgan Chase & Co. Preferred Series
JPMorgan Chase preferred stock remains a favorite among income investors seeking safety and dependable payouts. Backed by one of the largest and most stable U.S. banks, these preferred shares typically offer competitive fixed or fixed-to-floating yields. With strong capital ratios and diversified revenue streams across consumer banking, investment banking, and asset management, JPMorgan provides reassurance during volatile markets. For conservative income investors, JPMorgan preferred shares offer an appealing mix of stability, credit strength, and attractive dividend income potential.
2. Bank of America Corporation Preferred Series
Bank of America preferred stocks are widely held by dividend-focused investors. As one of the largest U.S. financial institutions, Bank of America benefits from diversified operations and strong liquidity. Its preferred shares often come with fixed-to-floating rate structures, helping investors manage interest rate risk. For income portfolios, these securities provide higher yields than common shares while maintaining exposure to a high-quality banking institution. Investors looking for reliable, bank-backed income streams frequently consider Bank of America preferred offerings.
3. Wells Fargo & Company Preferred Stock
Wells Fargo preferred shares attract income investors seeking relatively high yields from a major U.S. bank. While the bank has faced regulatory challenges in recent years, its capital position remains solid, and it continues to strengthen governance practices. Preferred investors benefit from priority over common shareholders in dividend payments. Many of Wells Fargo’s preferred issues also feature fixed-to-floating rates, offering some protection in rising-rate environments. For yield-focused investors, Wells Fargo preferred stock can offer appealing risk-adjusted income potential.
4. Citigroup Inc. Preferred Shares
Citigroup preferred stock often delivers higher yields compared to peers, reflecting both opportunity and perceived risk. As a globally diversified financial institution, Citigroup benefits from international exposure and investment banking operations. Income investors who understand the bank’s turnaround strategy may find its preferred shares particularly attractive. With priority dividend claims and solid capital buffers, Citigroup preferred shares provide strong income potential. For those comfortable with moderate risk, they can be a compelling addition to an income-oriented portfolio.
5. Realty Income Corporation Preferred Stock
Realty Income, known as “The Monthly Dividend Company,” is famous for dependable income generation. While most investors focus on its common stock, its preferred shares offer enhanced yield potential with the backing of a high-quality REIT portfolio. Realty Income owns thousands of retail and commercial properties under long-term leases, producing consistent cash flow. Preferred investors benefit from stable real estate income streams and senior dividend priority. For real estate-focused income portfolios, Realty Income preferred stock is worth serious consideration.
6. Public Storage Preferred Shares
Public Storage preferred shares are popular among income investors seeking exposure to defensive real estate assets. As one of the largest self-storage REITs in the U.S., Public Storage benefits from steady demand across economic cycles. Its preferred issues often carry fixed dividends and strong credit backing. Because self-storage properties tend to maintain occupancy even during downturns, income streams remain relatively stable. For conservative investors looking for reliable REIT-based income, Public Storage preferred stock offers an attractive yield with manageable risk.
7. Energy Transfer LP Preferred Units
Energy Transfer preferred units provide high yields supported by midstream energy infrastructure assets. The company operates pipelines and storage facilities that generate fee-based revenue, often insulated from commodity price swings. Preferred investors receive priority distributions, making these securities appealing for income seekers comfortable with energy exposure. While the energy sector can be volatile, Energy Transfer’s diversified asset base and long-term contracts support stable cash flows. For investors seeking higher income and willing to accept sector risk, these preferred units stand out.
8. NextEra Energy, Inc. Preferred Stock
NextEra Energy preferred shares combine income potential with exposure to renewable energy leadership. As a major utility and clean energy developer, NextEra benefits from regulated utility operations and long-term renewable contracts. Preferred investors enjoy consistent dividend payments supported by stable cash flows. Utilities are often considered defensive investments, and NextEra’s growth in wind and solar adds long-term upside. For income investors seeking both yield and sustainability exposure, NextEra preferred stock offers a balanced and forward-looking option.
9. AT&T Inc. Preferred Stock
AT&T preferred shares appeal to income investors seeking telecommunications sector stability. With a massive subscriber base and recurring service revenue, AT&T generates strong operating cash flow. Preferred stockholders benefit from dividend priority and typically higher yields than common shares. Although telecom competition remains intense, AT&T’s scale and infrastructure provide resilience. For income-focused investors comfortable with corporate telecom exposure, AT&T preferred shares can offer steady payouts and defensive characteristics.
10. Morgan Stanley Preferred Stock
Morgan Stanley preferred shares offer income investors access to a leading global investment bank. With diversified revenue across wealth management, institutional securities, and asset management, Morgan Stanley has strengthened its balance sheet over the years. Preferred investors benefit from solid credit quality and structured dividend payments. Many issues feature fixed-to-floating rates, helping manage interest rate shifts. For investors seeking dependable income backed by a top-tier financial institution, Morgan Stanley preferred stock remains a compelling choice.
Conclusion
Preferred stocks can play a valuable role in an income-focused portfolio, offering higher yields and dividend priority compared to common shares. The key is selecting financially strong issuers with reliable cash flow and solid credit profiles. From major banks to REITs and utilities, these top preferred stocks for income investors provide a range of opportunities to generate steady passive income in 2026 and beyond.