- It is incredibly difficult to generate income through conventional sources today, which is mostly a result of Federal Reserve policy.
- PSF offers an alternative as its 7% yield is much better than ETF or mutual fund alternatives.
- The fund essentially borrows money to invest in preferred stocks and bonds, but its leverage is reasonable and does not look overly risky.
- The fund is generating enough money to cover its distribution, although not all of it is being funded solely through income.
- The fund is trading at a slight premium to NAV, so it might make sense to wait a little bit and see if you can get it for cheaper.
For further details see:
PSF: A Solid Income Fund But A Bit Pricey