Wednesday, August 14, 2013


While browsing the August 5th edition of Barron's, I noticed in their preferred stock quote pages the large number of preferred stocks paying dividends in the 7%-9% range.  As a dividend investor seeking increased monthly income, I thought it wise to do a little more research on preferred stocks.  

With limited investment capital, it would be impractical for me to invest in individual preferred stocks, so I looked at ETF's and managed preferred stock funds.  While some had better investment results, I decided to add iShares PFF Preferred Stock Fund to my buy list.  I won't be investing right away, but I like their monthly dividends with over a 5% yield.  Even though it is a passively managed fund, they invest in a limited number of high quality preferred stocks, which suits my investment objectives, since I already have enough invested in riskier issues.

Before I make a final decision to invest, I'll be doing a great deal more research.  In the end, I may not choose to invest in PFF, but it's a sure bet I'll be putting some money to work in preferred stocks, one way or another.

No comments: