PFFA: A Preferred Strategy Amid Recession Concerns
Virtus InfraCap U.S. Preferred Stock ETF offers high income and diversification through U.S. preferred securities, with a current yield of 9.47%. PFFA outperforms the S&P U.S. Preferred Stock Index but slightly underperforms the S&P 500, especially during recent market rallies driven by AI speculation. The ETF's diversification across sectors, including financials, real estate, and utilities, helps mitigate risk, especially in uncertain economic times.
PFFA: 9% Yield That Income Investors Should Not Ignore
PFFA has recently performed very well, despite the interest rate cuts and its exposure to floating preferreds (including negative yield-to-call risk). The yield has dropped to 9%, which raises the question of whether the yield is too low relative to the theoretically unfavorable environment. In the article, I share multiple reasons why this is not the case.
My Retirement Portfolio Yields 9%, Boosted By PFFA
Grab some Kleenex for the tears of joy you'll be shedding. This fund puts the FUN in fund and in your retirement. Don't miss out on income or capital gains today.
Preferred Stocks With Room To Run
I built a preferred stock portfolio starting in 2022 in anticipation of falling inflation and interest rates, which has delivered strong double-digit returns. With fiscal and monetary policy now more aligned, I expect inflation to return to the Fed's 2% target and falling interest rates creating further upside for preferred stocks and ETFs. Preferred stocks RITM.PR.D, ABR.PR.F, CIM.PR.C, and ETFs PFFA, PFFR, and PFXF should benefit from declining rates over the next year.
PFFA: Bullish, Despite Its Inherent Risks
Virtus InfraCap U.S. Preferred Stock ETF's leveraged, high-yield strategy will naturally table risks. Despite the fund's risk appetite, key metrics suggest that returns have eclipsed PFFA's risk exposure. PFFA ETF's total returns and distribution profiles convey soundness.
Hard To Imagine Retirement Income Without These 2 Cash Machines
Achieving financial independence through income-only investing is challenging, especially with no asset sales and the need for inflation protection. Yet, this strategy reduces longevity risk, enables generational wealth transfer, and lessens stress from market volatility. The best approach is to target high-quality, high-yield value stocks with stable dividends and reasonable valuations, avoiding value traps.
PFFA: Not All Preferred ETFs Are Built Alike
One underappreciated benefit of preferreds is how well they can fit inside an exchange-traded fund. PFFA prioritizes yield and total return, using an actively managed strategy tailored to the complexities of the preferred space. Over numerous time horizons, PFFA has consistently outpaced the S&P U.S. Preferred Stock Index and its Morningstar peer category average.
Collect Massive Preferred Stock Income For Your Retirement: PFFA
Are you a fated pair with this fund? Maybe! But the income it provides is generous. No need for backroom deals or blood oaths, you can buy this income on the stock market easily. Discover the love of income, and you'll be rolling in dividends.
As We Get Older And Stop Making Cents
A penny for your thoughts? Oh, no! We don't make 'em anymore! As you age, you make fewer cents, and need more dollars to live. Your retirement needs cash flow; how do you plan to generate it?
PFFA: Preferred Shares Aren't Always Safe - Key Reasons To Sell
I rate PFFA a sell despite its high yield and peer outperformance, as I see limited opportunity and elevated risks at current levels. PFFA's 2024 distributions weren't covered by cash flow, relying on leverage and realized gains—unsustainable if market conditions worsen. Leverage amplifies both returns and losses, making PFFA especially vulnerable during market panics and contributing to long-term NAV erosion.
PFFA: Diversify Your Income With This Near 10% Yield
Virtus InfraCap U.S. Preferred Stock ETF offers a compelling near 10% dividend yield, making it attractive for income-focused investors seeking preferred stock exposure. The ETF invests primarily in preferred shares, which are generally lower risk than common stocks and provide more stable, fixed payouts. PFFA's portfolio is diversified across several sectors, but has significant exposure to financials and real estate, which could pose risks in sector downturns.
My Number 1 Pick For Retirement Income, Yield 10%: PFFA
I love preferential treatment when it comes to my income – it must arrive quickly and timely. I don't need it in daily life, but I prefer my income to come quickly. Your retirement needs income solutions, this is for you.
