Income investors are loving life in 2016. The Federal Reserve has yet to raise interest rates, and with each passing month without a rate hike, it appears increasingly likely that the most rate hikes coming this year will be two.
Predictably, this scenario has been a boon for plenty of income-generating asset classes and sectors, including preferred stocks and exchange-traded funds. A preferred stock is a type of security that offers characteristics of both bonds and equities. The primary source of allure with preferreds is yield, although preferred shareholders are higher on the totem pole in the event of issuer bankruptcy or default than are common equity holders.
A Few Preferred Names
The iShares S&P US Pref Stock Idx Fnd (ETF) (NYSE: PFF), which tracks the S&P U.S. Preferred Stock Index, ...
/www.benzinga.com/trading-ideas/long-ideas/16/05/7911570/why-its-a-good-idea-to-prefer-preferred-etfs alt=Why It's A Good Idea To Prefer Preferred ETFs>Full story available on Benzinga.com
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