PFFA - PFFA: Buy The Dip
2024-04-18 09:56:25 ET
Summary
- Virtus InfraCap US Preferred Stock ETF was launched on May 15, 2018.
- For the last roughly 6 years, PFFA has paid a continuous monthly dividend, with the last increase in January 2024.
- The Fund currently offers a 10% dividend, with additional modest dividend increases expected.
- In addition to the rich dividend, the price of PFFA should increase as interest rates moderate.
Introduction
I've previously published articles here on Seeking Alpha, covering the Virtus InfraCap US Preferred Stock ETF ( PFFA ). Since the last article was published in January 2024, PFFA was up smartly riding the expectation that the Federal Reserve would begin an aggressive interest rate reduction campaign as early as March. Over the last couple of weeks, along with most fixed income assets, the price of PFFA has dropped by 4.9% as investors have come to understand what "higher for longer" really means. The economy has shown to be stronger than expected and inflation a bit stickier than expected, prompting the Federal Reserve to push out any reduction in the Federal Funds Rate to September or later....
PFFA: Buy The Dip