Preferred Stock Features PIK Preferred: Pay-in-kind preferred stocks pay additional preferred shares to investors rather than cash dividends Retirement: Most preferreds are callable, and many include a sinking fund provision to set cash aside for the purpose of retiring preferred shares• PIK Preferred: Pay-in-kind preferred stocks pay additional preferred shares to investors rather than cash dividends. • Retirement: Most preferreds are callable, and many include a sinking fund provision to set cash aside for the purpose of retiring preferred shares. Preferred Stock Features