This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

Like guests at a buffet reception, today's investors can choose from a wide financial menu. Some of these dishes will agree with them, and others may not. But those who choose a variety will be more satisfied than those who select only one or two options.

Your portfolio should be like a well-balanced meal, containing a range of investments offering different degrees of income and risk. The specific mix depends on your age, goals and risk tolerance.

On the low-risk side, you can't beat Treasury securities. Moving up the income scale, you might consider investment-grade corporate bonds. Another source of better income with relative safety is preferred stock.

Preferred stock is more like a bond than a stock. If you're safety conscious, you'll like the fact that preferred stock is just what its name implies: If a company becomes insolvent, its preferred stockholders are paid before common stockholders (although after bondholders and other creditors). If income and dividend payments become a problem, the same pecking order applies. There are different levels of preferred stock, however, meaning some preferred stockholders would be paid before others.

But don't make investment decisions based on who gets paid first if the company goes under. With preferred stock, choose quality corporations with high credit ratings. And investing in companies listed on the major stock exchanges makes it easy to buy and sell.

An advantage of preferred stock is the frequency of dividend payments. Most preferred stocks pay dividends quarterly, rather than semiannually like bonds. Typically, that income may be better than what you could expect from common stock or bonds.

Preferred stock may be one of the most confusing and misunderstood investments offered to the public, perhaps because it is available in so many variations. Each has a different benefit or restriction.

However, preferred stock can be appropriate if you're looking for attractive income with relative safety. Before you invest, select a financial professional who is knowledgeable about preferred stock. Ask pointed questions, and don't invest until you feel satisfied with the answers.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.