Dividends4Life: The 3 Best ETFs for BIG Preferred Stock Dividends

The 3 Best ETFs for BIG Preferred Stock Dividends

Posted by D4L | Thursday, December 29, 2016 | | 0 comments »

Preferred stocks offer the relative security of bonds compared to stocks, move in a tight trading range and offer dividends that are higher than both bonds and dividend stocks. But even better than preferred stock are the very best exchange-traded funds that combine issuances of preferred stocks into a diversified basket. This provides a backstop should any of the preferred stocks blow up. Even though such instances are highly unlikely, it’s always better to be safe than sorry. Preferred stocks only blow up when the underlying companies are severely liquidity constrained. And most companies that issue preferred stock are unlikely to be in that position.

With that in mind, here are three of the best ETFs to win big with preferred stock: PowerShares Financial Preferred ETF (NYSEARCA:PGF) has the best capital gain return over the last five years, up 10.2%. In second place for the five-year capital gain return is the VanEck Vectors Preferred Securities Ex Financials ETF (NYSEARCA:PFXF). For those looking for a much greater risk that offers high dividends and the potential for big capital gains, as well as possible losses, look at the iShares International Preferred Stock ETF (NYSEARCA:IPFF).

Source: InvestorPlace

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