Preferreds question

If dividend payments on preferreds are totally discretionary, and the company can opt to skip a dividend payment without having to compensate at the next quarter, is this just a huge risk that investors take with preferreds? Are there any incentives (beyond future credibility) that the company has to honor the payments? Or is it just that it would be a poor indicator of the company's performance?

Seems like a ton of risk to take on.

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