PFFA: Diversify Your Income With This Near 10% Yield

(9min)

Summary

  • Virtus InfraCap U.S. Preferred Stock ETF offers a compelling near 10% dividend yield, making it attractive for income-focused investors seeking preferred stock exposure.
  • The ETF invests primarily in preferred shares, which are generally lower risk than common stocks and provide more stable, fixed payouts.
  • PFFA's portfolio is diversified across several sectors, but has significant exposure to financials and real estate, which could pose risks in sector downturns.
  • The fund's high expense ratio of 2.48% is a drawback, but monthly payouts and liquidity add to its appeal for income-oriented portfolios.
  • Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More »

Close-up bond market trading screen with rising yields. Coupons, rates, yields and other informations are displayed.

Torsten Asmus

Article Thesis

Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA) offers a pretty appealing dividend yield of almost 10% at current prices. Due to the nature of the assets the ETF invests in, there is little upside potential, but preferred shares

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This article was written by

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Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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About PFFA ETF

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