From the investopedia article on preferred vs. common shares:
Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation and they have a fixed dividend (paid before common stockholders), but investors must weigh these positives against the negatives, including giving up their voting rights and less potential for appreciation
Why would preferred shares have less potential for appreciation? Is it because the dividend will be paid (possibly) only to preferred shareholders, but not to common shareholders, and hence the preferred share price will drop by the dividend amount on the ex-dividend date?
But in this case, the drop is compensated by the dividend itself, so obviously this explanation is not correct. What am I missing?