PGX: A Good Preferred Stock ETF

Oct. 13, 2021 1:36 PM ETInvesco Preferred ETF (PGX)PFF, PFXF, PGX10 Comments
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Summary

  • PGX is a well-diversified ETF that invests in preferred securities. The strategy applies a credit quality screen before purchasing preferred stocks.
  • PGX makes monthly payments on a 4.5% annual dividend yield. PGX is suitable for the dividend investor seeking a regular source of income.
  • Do not expect high capital gains on this investment, the returns will be generated by the dividend payments.

Investment management. Portfolio diversification.

Olivier Le Moal/iStock via Getty Images

Investment Thesis

As Bridgewater's Ray Dalio says, all assets are in competition with one another. In a word with interest rates close to zero, income investors are searching for alternative options that provide higher yields. The Invesco Preferred

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About me: Value-oriented investor, seeking low-risk investments with the potential to deliver high returns. I like to analyze commodities, ETFs, and cash-flow positive businesses that have a moat and growth opportunities.

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