Prefs work for me, specifically the more recent issues that are linked (refer back of FinWeek for list, together with up-to-date div yields etc) Distributions are based on nominal value (in your example, R100), but you can buy them on the platform for much less (say R86)so you returns will be above 10% - distributions (rate linked to prime) normally pay twice per annum, and this affects the market price before and after LDT. Divs are tax free in your hands. They are less volatile than equities. Risk is built into price, but hey, if you think Grindrod, Steinhoff and Netcare prefs are risky, then we are all in big trouble! Hope this helps ........?