Are Preferred Stocks risky

Within a given compoany, preferred stock is a lower risk than common stock, as the preferred shreholder generally has a claim against future profits in the event a dividend is skipped, before any common stockholder. On the other hand, preferred stock dividends stay fixed, whereas common stock dividends are normally increased over the longer period of time. So, if on considers inflation as a risk, perhaps common stock actually wins out. The real question of risk comes down to the individual company, a more important decision element than the stock desigation. For instance, on its common stock, General Electric has paid a continual and increasing dividend, decade after decade. So, its common stock is far more secure, especially taking inflationary forces into account, than the preferreds of many less stable companies.