Loading…
Loading…
2 investment grade dividend stocks have sold off sharply even as their earnings climbed, but only one of them is a real bargain. One "deep-value" yield looks great on paper, but a new $2 trillion competitor and a quiet build-up of debt tell a different story. The other has been dumped for reasons that look worse than they are, which leaves a 5%+ yield backed by contracted cash flows.
Virtus InfraCap U.S. Preferred Stock ETF (PFFA) offers a 10.7% yield, outperforming its index and maintaining monthly payouts despite recent rate hikes. PFFA leverages active management, sector tilts, and an options overlay to enhance income and capitalize on preferred market inefficiencies. Leverage (25% of NAV) and sector concentration drive both yield and risk; rising rates increase funding costs, but the income spread remains attractive.
Virtus InfraCap US Preferred Stock ETF offers a high ~10% yield but faces notable interest rate and NAV erosion risks. PFFA's active management and leverage have enabled relative outperformance versus passive peers, yet absolute returns remain moderate at times of rising rates. A meaningful portion of distributions is funded by realized gains, not just net investment income, raising sustainability concerns if rates rise further.
Income investors now have a much wider choice of attractive yields than they have had for years. Risks in the system are higher too, but that has pushed prices to levels that favor patient buyers. Two high-quality income vehicles have sold off recently, and the drop looks more like repricing than real trouble.
Many investors are growing increasingly complacent. I detail three very big mistakes that I am seeing a lot of investors make right now. I discuss why bonds may be riskier than they seem, historically cheap-looking high-yield securities may not be nearly as undervalued as they seem, and many investors are overpaying for outperformers.
Our bills arrive every month—so why shouldn't our investments pay us monthly, too? We explore two 10%+ yielding investments that can help build a reliable retirement paycheck. The goal isn't just a high yield or large unrealized gains—it's building a portfolio that works around the way you actually live and spend.
Building a $100,000 dividend snowball is foundational for financial security and passive income. I detail how I would go about doing so in today's rising rate environment. I also share some specific picks and how to allocate capital on a percentage basis to build the snowball.
Selling shares in retirement hands the market control over your income, but three ETFs built on options premiums and leveraged preferred stock flip that equation entirely, and not all of them work the same way in a taxable account.