Stock Market Worries? Buy Preferred Stocks For Big Income: PFFA
We all have preferences, but many miss that companies have preferences too. I collect income from preference securities issued by major companies. I share my preferred way to collect income from their preferences.
PFFA: Best Among Its Preferred Share Peers
Since my last 'Buy' update, PFFA has underperformed the S&P 500 but trounced other preferred share ETFs' performance on a total shareholder return basis. A dovish rates environment is more favorable for equities over the preferred share class. But PFFA's leverage, active management, and fixed-to-floating preferred share mix may help it outperform its peers. PFFA is trading close to NAV fair value and its relative technicals seem to be in a limbo state with neither a strong show by the bulls nor the bears.
PFFA: The Right Moment To Lock In This 9% Monthly Dividend
Over the past couple of months, PFFA has not performed well. The unfavorable interest rate dynamics have introduced a pressure on PFFA's preferred share real estate, infrastructure and fixed-to-floating rate holdings. Yet, in the article I make an argument on why this could be considered an interesting opportunity for high and defensive income investors to lock in ~9.1% dividend.
Why 9.2%-Yielding PFFA Beats The Competition
PFFA offers a juicy 9.2% yield. However, that is not all it has going for it. We show why PFFA beats its competition.
Virtus Unveils New Active Private Credit CLO ETF
On Tuesday, Virtus Investment Partners launched its latest active ETF, the Virtus Seix AAA Private Credit CLO ETF (PCLO). The actively managed fund has a low net expense ratio of 0.29%.
PFFA: Top ETF For Preferred Stock Dividend Income
PFFA has delivered exceptional total returns, outperforming other preferred stock and fixed income ETFs, driven by active management and leverage. The Federal Reserve's accommodative monetary policy is expected to benefit PFFA, supporting continued capital appreciation and stable dividend payments. Despite higher expense ratios, PFFA's net returns remain strong, with the cost of leverage likely to decrease as interest rates fall.
PFFA: One Of Our Favorite 'High Yield' Funds On The Market
PFFA offers exposure to high-yield preferred stocks, which sit somewhere between traditional stocks and bonds. The fund's robust asset selection process, use of leverage, and options overlay contribute to its strong performance and stable income generation. Despite high fees, PFFA's active management and consistent outperformance justify the cost, making it a solid choice for income-oriented investors.
Earn 9% Monthly Income From Preferred Stocks: PFFA
Fixed-income investing is a weak spot for many investors, as it seems more opaque and daunting. We propose an option that vastly simplifies it, while not sacrificing the outstanding income generation we need. Collect income, not headaches.
New Virtus ETF Has Active Midcap Strategy
On Wednesday, Virtus Investment Partners released its newest fund, the Virtus KAR Mid-Cap ETF (KMID). KMID is an actively managed fund that seeks to generate long-term capital appreciation.
PFFA: 8% Yield On Preferred Stocks, Outperforming Peers
Preferred stocks and ETFs like PFFA are rising due to lower Fed rates, offering higher yields than CDs and Treasuries. PFFA, a non-diversified ETF with $1.3B in assets, uses leverage to maximize yield-to-call and minimize concentration risks. PFFA has the highest distribution yield (8.82%) and 5-year return (6.68%) among preferred stock ETFs, despite its high expense ratio (2.52%).
PFFA: Monthly Dividend Of ~ 9% With Tangible Price Increase Potential To Consider
Since the issuance of my bull case on PFFA back in November 2023, the ETF has delivered ~ 30% in total returns. This might raise the question of whether the upside potential is already exhausted. In this article, I explain in detail why I continue to remain bullish here.
Two High-Yield ETF Cash Machines for Your Retirement Portfolio
A high-yield dividend-paying exchange-traded fund (ETF) could be a valuable tool for investors seeking to build a solid portfolio that generates dividends. These ETFs offer a steady income stream, providing a cushion for living expenses and the potential for capital appreciation.
