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iShares S&P U.S. Preferred Stock Index ETF (PFF) announces monthly distribution of $0.100....

iShares S&P U.S. Preferred Stock Index ETF (PFF) announces monthly distribution of $0.100. 30-day SEC yield of 5.54%. For shareholders of record Mar. 05. Payable Mar. 07. Ex-div date Mar. 01.
Comments (14)
  • Bryce_in_TX
    , contributor
    Comments (2565) | Send Message
     
    Wow. That's a lot lower than it has been. That is not a 5.54% yield.
    1 Mar 2013, 10:05 AM Reply Like
  • JBDivman
    , contributor
    Comments (2) | Send Message
     
    Yeah, whats up with that? Only about a 3% yield.
    1 Mar 2013, 12:28 PM Reply Like
  • Tortoise #1
    , contributor
    Comments (412) | Send Message
     
    If the $ .10 monthly dividend for February is accurate, on an annualized basis at the current cost of $40.11 is very disappointing.

     

    Anyone have an explanation as to why the monthly dividend declined so?

     

    It occurs to me that February had only 28 days but that would account for about a 50% decline from the customary near .20/month dividend!
    1 Mar 2013, 02:08 PM Reply Like
  • Tortoise #1
    , contributor
    Comments (412) | Send Message
     
    Correction: Would NOT account for a near 50% decline.
    1 Mar 2013, 02:10 PM Reply Like
  • Chancer
    , contributor
    Comments (2514) | Send Message
     
    Time for me to sell this puppy I have owned since 9/29.08 at 28.65 with nice gain.
    1 Mar 2013, 07:43 PM Reply Like
  • JBDivman
    , contributor
    Comments (2) | Send Message
     
    Cant find any significant news regarding the low divvy. And yet PFF closes up a few cents on the day. Makes me uncomfortable. In fact, I liquidated my position today. May come back in after I get a better understanding of whats happening here.
    2 Mar 2013, 03:21 AM Reply Like
  • Tortoise #1
    , contributor
    Comments (412) | Send Message
     
    In the absence of specific news explaining the much lower that "normal" PFF monthly distribution, I believe the March dividend amount to be an anomaly and that next month the dividend will return to the higher levels to which we are accustomed.

     

    We bought our shares in March 2012 and on 03/07 we will have received 12 monthly dividends. An an annualized basis the yield on our cost is exactly 6%.

     

    That yield was our goal! I see no reason to panic!

     

    We also hold PFXF in our portfolios. Their February monthly dividend was much lower than "normal". The March dividend has returned to the level to which we are accustomed!
    2 Mar 2013, 11:20 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2565) | Send Message
     
    " In the absence of specific news explaining the much lower that "normal" PFF monthly distribution, I believe the March dividend amount to be an anomaly and that next month the dividend will return to the higher levels to which we are accustomed."

     

    I am thinking the same thing. March of 2012 was .14, a good drop from the usual.
    2 Mar 2013, 08:01 PM Reply Like
  • Tortoise #1
    , contributor
    Comments (412) | Send Message
     
    Bryce, Thanks for your research! I hope our assumption is correct!
    I think it is!
    3 Mar 2013, 02:21 PM Reply Like
  • SA Editor Jonathan Liss
    , contributor
    Comments (466) | Send Message
     
    BTW, the 30-day SEC yield is as of March 1, so based on the past distribution. As several of you have pointed out, the 30-day yield on the March distribution will likely be significantly lower.
    4 Mar 2013, 03:24 PM Reply Like
  • David Jackson
    , contributor
    Comments (1229) | Send Message
     
    Sorry for the ignorant question, but how exactly is the 30-day SEC yield calculated?
    19 Mar 2013, 08:16 AM Reply Like
  • SA Editor Jonathan Liss
    , contributor
    Comments (466) | Send Message
     
    This is what SPDR writes on their fund pages: "An annualized yield that is calculated by dividing the investment income earned by the fund less expenses over the most recent 30-day period by the current maximum offering price."
    19 Mar 2013, 08:21 AM Reply Like
  • David Jackson
    , contributor
    Comments (1229) | Send Message
     
    So, to clarify: was the 5.54% 30-day SEC yield reported (in the Market Current) for the last dividend actually paid, and not the yield once the new distribution is made on March 7th?
    19 Mar 2013, 08:52 AM Reply Like
  • SA Editor Jonathan Liss
    , contributor
    Comments (466) | Send Message
     
    That is correct. It was taken directly from the issuer site at the time the market current was published and as such would be accurate for the prior day's close (2/28/13) only.
    19 Mar 2013, 09:28 AM Reply Like
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