And is this structure the reason why investors should look into preferred shares?

Well, the first reason investors should look into preferred shares is to consider the income.

Preferred shares have historically offered higher dividend yields than both Canadian equities, as well as investment grade bonds.

That's particularly relevant today.

Many investors are continuing to search for income, and this is an option to get that income without taking on excessive credit risk.

The attractive feature of Canadian preferred shares is that much of this income comes from high quality issuers.

In fact, the majority of the Canadian preferred share market consists of investment grade companies, including Canada's largest banks, insurance companies, utilities, telecommunications firms, and energy companies.

Given all of this, and especially the benefits, how come most investors have not looked further into the asset class?