BUYING MORE SHARES OF PFF TO BOOST DIVIDEND INCOME

In a move to boost monthly dividends, I've decided to increase my stake in iShares S&P U.S. Preferred Stock Index Fund (PFF:NYSE).  They have a current yield of 9.23% on a recent share price of $39.85.  Exchange traded funds that focus on dividend paying stocks trailed the market by a wide margin in 2009, but may attract yield starved bond investors who are also worried about the prospect of rising interest rates.  Several factors are causing some fixed income investors to take a second look at stocks to generate income.  Yields on CDs, money markets and high quality bond funds are at paltry levels thanks to the Federal Reserve's commitment to keep rates low to fight recession.  There's also the fear among bond fund investors of the potential losses from rising interest rates.

After taking all this into consideration, I decided it would be a good place to put available funds to work.  Where else can you get a reasonably safe 9.23% yield?  As with all stock investments there are risks, so if you're thinking about investing in PFF, do your homework people.