I understand what preferred stock is, how it works, the rules, etc.
When is the right time to buy preferred stock though? If I want income I would go for the bonds, and if the company is going to experience a surge in profits, I want the common stock.
So when does it really make sense to buy the preferred? I guess just if it looks cheap? Maybe after a recession? If the preferred par is 100 and yield is 7% and it cuts the dividend and it plumments to like 50, I could see why it is the better buy in a low interest rate environment on the way out of recession. But the common stock would proabbly do better.
Any insight onto buying preferreds, when it makes sense, how to value it, etc?