Investors Turning to Dividend-Paying ETF

By Sam Collins April 28, 2011, 09:00:29 PM EDT

iShares S&P U.S. Preferred Stock Index Fund (NYSE: PFF ) - This income exchange-traded fund (ETF) seeks to track the performance of the U.S. Preferred Stock Index. It pays a dividend of $2.58, yielding 6.47% (SEC 30-day yield of 6.09%).

PFF has traded in a narrow range of $38.50 to $40 for more than nine months. However, in times of crisis, the fund will fluctuate. Although not shown on the chart, the low of last year was made in May below $36 on rumors of the possible failure of some European banks, which turned out to be false. Following the mini-crisis, the fund sprang back to its normal trading range.

Note that accumulation is rising as more investors find this preferred stock fund a valuable addition to their portfolios to satisfy their long-term income and diversification needs.

Trade of the Day - iShares S&P U.S. Preferred Stock Index Fund (NYSE: PFF)

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Investing Ideas, Stocks

Referenced Stocks: ETF, PFF



Latest News Video



From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.15 0.06  0.45%
INTC $ 23.635 0.42  1.73%
FB $ 24.61 0.45  1.80%
HPQ $ 24.44 0.42  1.69%
P $ 18.04 0.88  5.13%
MSFT $ 34.15 unch
PFE $ 28.913 0.20  0.68%
PG $ 81.75 3.05  3.88%