Dominiack Law Group

Main Menu

  • Home
  • Stock dividend
  • Liquid market
  • Year’s Maximum Pensionable Earnings
  • Import surveillance
  • Capital

Dominiack Law Group

Header Banner

Dominiack Law Group

  • Home
  • Stock dividend
  • Liquid market
  • Year’s Maximum Pensionable Earnings
  • Import surveillance
  • Capital
Stock dividend
Home›Stock dividend›Beat inflation with exposure to preferred stock dividends

Beat inflation with exposure to preferred stock dividends

By Michaela Ezzell
January 19, 2022
18
0

As consumer prices continue to climb, inflationary pressures are keeping fixed income investors on their toes, but there are options like exposure to preferred stock dividends.

Inflation can add a great deal of worry to a fixed income investor’s portfolio, eroding income over time. This becomes particularly disconcerting if inflation becomes more persistent rather than transitory.

Investors have a wide range of options when it comes to trying to beat inflation, which can include adding precious metals or even digital assets as cryptocurrencies get started. to gain popularity among investors. Another way is to try to get the highest return possible, but that also means taking on more credit risk.

Yields outside of the US may also be an option, but with the pandemic in tow, this also poses a risk for global markets. Another option is to strategically maintain exposure to US fixed income via preferred stock dividends.

1 Dividend ETF to Go For

Gaining this type of exposure to preferred shares is available with the Favorite US Global X ETF (PFFD). The fund seeks to provide investment results that generally correspond to the price and yield performance of the ICE BofA Diversified Core US Preferred Securities Index, which is designed to track the overall performance of the US preferred securities market.

“Preferred stocks are often analyzed alongside corporate and high yield bonds because of their yield-oriented characteristics and fixed-income-like behavior,” Global X research notes. Preferred bonds are lower in capital structure than traditional bonds and trade on an exchange offering additional liquidity.”

“For portfolio construction purposes, we believe they should be considered alongside corporate debt, high yield and other income-generating asset classes like emerging market bonds and senior loans like source of potential revenue,” Global X adds. privileged.”

Overall, PFFD offers investors:

  • High Income Potential: PFFD invests in a broad basket of US preferred stocks, an asset class that has historically offered high return potential.
  • Low spend rate: PFFD’s spend rate of 0.23% is half the average of competitors.
  • Monthly Distributions: PFFD makes distributions on a monthly basis.

For more news, insights and strategy visit the Thematic investment channel.

Related posts:

  1. Is Scandinavian Tobacco Group A / S (CPH: STG) a sexy dividend-paying inventory?
  2. Does LiveChat Software program SA (WSE: LVC) have a spot in your dividend portfolio?
  3. SUN KWANG CO., Ltd. (KOSDAQ: 003100) Is An Engaging Dividend Inventory – Here is Why
  4. Kesla Oyj (HEL: KELAS) pays dividend of € 0.10 in simply 4 days

Recent Posts

  • Haverty Furniture Increases Quarterly Dividend by 12%; Good income Pay shares to buy?
  • ESG Investing and Money Market Funds – Strange Companions or a Good Match?
  • MACAU DAILY TIMES 澳門每日時報 » Real estate agency charged with multiple crimes beyond TNR quota
  • The Gabelli Equity Trust Inc. (NYSE:GAB) plans quarterly dividend of $0.15
  • Smart Pigging System Market Expected to Be Worth Over USD 863.31 Million by 2027: Fior Markets

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • July 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2019
  • December 2018
  • May 2018
  • December 2017
  • November 2017
  • March 2017
  • November 2015
  • September 2015

Categories

  • Capital
  • Import surveillance
  • Liquid market
  • Stock dividend
  • Year's Maximum Pensionable Earnings
  • TERMS AND CONDITIONS
  • PRIVACY AND POLICY