NYMTZ - Bad News For 9.5%-Yielding PFFA
2024-06-13 08:04:00 ET
Summary
- The Virtus InfraCap U.S. Preferred Stock ETF offers a high annual dividend yield of nearly 10% that is paid monthly.
- PFFA has also outperformed the broader preferred index substantially over time.
- However, there is growing bad news for the fund that could threaten its outperformance.
The Virtus InfraCap U.S. Preferred Stock ETF ( PFFA ) is a popular investment vehicle for those seeking a high and ideally sustainable dividend yield backed by an actively managed and diversified portfolio of preferred equities. The main appeal of PFFA is that it offers investors a dividend yield of nearly 10% per year, distributed on a monthly basis. Its yield is fully covered by internally generated cash flows due to the leverage employed by the fund, which enhances the yield on its portfolio of underlying preferred securities....
Bad News For 9.5%-Yielding PFFA