Dividends4Life: 3 Preferred Stock ETFs Yielding 5%-Plus

3 Preferred Stock ETFs Yielding 5%-Plus

Posted by D4L | Tuesday, January 06, 2015 | | 0 comments »

Preferred stock has come into favor these last few years, partially because other income investments are so disappointing. The yield on the 10-year T-Note is less than 2.2% right now despite overtures of tighter Federal Reserve policy in 2015, and many old favorites among dividend stock investors aren’t much better. Consider consumer staples stocks The Coca-Cola Co. (KO), Colgate-Palmolive Company (CL) and Procter & Gamble Co. (PG) that all yield less than 3% in dividends right now.

So where is an investor to turn if they want big yield? One alternative is preferred stock, or at least funds that own this asset class. Preferred stock is, in many respects, a hybrid between common stock and corporate bonds. While not as stable as bonds, preferred shares are not as volatile as common equity and are ahead of common shareholders in the pecking order when it comes to getting paid. Among the preferred stock investments available for small-time investors, here are my three favorites right now that all yield more than 5%: Global X SuperIncome Preferred ETF (SPFF), Market Vectors Preferred Securities ex-Financials ETF (PFXF) and iShares U.S. Preferred Stock ETF (PFF).

Source: Investor Place

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