Preferred stock is a great tool for income investors who are looking for dividends but are leery of the bond market. After all, it’s almost certain the Federal Reserve will raise rates in the next year or so, given the modest pace of inflation and the continued downward march in the unemployment rate. And if rates rise, bonds could take a hit — but preferred stock could remain insulated thanks to its high yield.
Preferred stock is considered by many to be halfway between a bond and a stock. It is similar to a bond in that preferred stock has low volatility and (usually) a fixed rate. Meanwhile, preferred stock is similar to common stock in that it still comes after bondholders and debt obligations in the event of bankruptcy, and while less volatile than common stock, it does have the ability to move up (or down) on a share-price basis over time. If you’re interested in using preferred stock as a way to find big income, here are five funds that focus on preferred shares that will give you 5% yields or better: iShares U.S. Preferred Stock ETF (PFF), Global X SuperIncome Preferred ETF (SPFF), Nuveen Preferred Securities Fund (NPSAX), Market Vectors Preferred Securities ex-Financials (PFXF) and PowerShares Preferred Portfolio (PGX).
Source: InvestorPlace
Related Articles:
- 3 Higher-Quality, High-Yield Dividend Stocks
- 13 Dividend Growth Stocks With A Good Yield/Growth Mix
- High Yield, High Risk Dividend Stocks
- Dividend Stocks vs. Dividend ETFs
- If Only I Had Known About These Dividend Stocks...
Preferred Stock Plays With 5%-Plus Yields
Posted by D4L | Sunday, September 14, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividend Aristocrats and Kings tend to snag most income investors’ eyes with their consistent dividend payouts, proven-and-tested business o...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
-
Dividend stocks are famous for generating regular income, providing investors with the opportunity to earn while they sleep. However, invest...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.