MiddleOfRoader

Preferred Dividend ETFs: Shelter from the Storm?

Gary Gordon wrote an article back on Oct. 20 suggesting investors take a look at PFF. The share price was $29 then versus $21 at the close Nov. 20.

I complained then that JPM, BAC, USB and Citi issues were the top 4 holdings. Citigroup VIII has now slipped to the 5th largest holding, at 4.61%.

I suggest waiting until the Citigroup situation is resolved before diving into PFF. In the meantime, I suggest looking at non-financial preferreds.

I have a few shares of Comcast preferreds, CCT, which at $18 yield around 9%. I don't live in a Comcast service area, so I don't have a feel for how heated the battle is with Verizon and other competitors. However, Comcast was still reporting revenue and earnings gains as of the last quarterly report, unlike a lot of other businesses.