Preferred Stock Investing-The Good , The Bad and The In Between 2021

[richardsok]

I follow it. PFXF yields less than PFFA and is roughly sympathetic, but it appears more volatile. Hence I prefer PFFA for the longer term distributions but PFXF might be a good vehicle for shorter-term trading. Currently seems in a dip; possible buy oppty right here.

 

[brokrken]

Anyone have any opinion on ELC, EMP, EAI? All yielding around 6.1% and rated A.

 

[Flyfish1]

It's my biggest holding in the preferred space. So I just let it give me dividends...(not buying or selling)

Same here. I also have JPC and DFP as well as some individual preferreds. Recently acquired some term preferreds, not much but I like the idea and am going to ladder them. More or less like baby bonds.

 

[yakers]

I follow it. PFXF yields less than PFFA and is roughly sympathetic, but it appears more volatile. Hence I prefer PFFA for the longer term distributions but PFXF might be a good vehicle for shorter-term trading. Currently seems in a dip; possible buy oppty right here.

I hold some PFFA and PFXF, they have done OK. I am always looking for some ETF/CEF/MF that I can just buy & hold indefinitely to cover the asset class. These seem to come the closest, but not as good asset coverage as ETFs for utilities, energy and the like. Folks here are traders (somewhere between pros and serious hobbyists) and seem to do well, I am not trying to maximize, just to capture average asset class performance and that seems hard enough to do.

 

[bobandsherry]

Anyone own or have opinions on PFXF?
I bought a little to get non-financial exposure.

One thing to be aware of is that PFXF isn't as broadly diversified as it might first appear. Roughly 9% of the fund is in Strategy's preferred securities, and about 8% is in Boeing's convertible preferred, so nearly 17% of the portfolio is concentrated in just those two issuers.

If you're comfortable with that level of exposure, it could still be a good fit. Personally, I'd be cautious about making it a large position. I'd probably keep it to around 10% of a portfolio, or even less.

My biggest hesitation is the Strategy exposure. The company's strategy is still heavily tied to Bitcoin, and highly leveraged. It's stock is down 75% in past year. For me, though, Bitcoin falls more into the speculation category than investing, so that concentration makes PFXF less appealing than it otherwise would be.

 

[Texas Proud]

The one thing that I like about buying individual shares is that you lock in that rate for as long as you own..

PFFA is variable... divis can go up and down...

The negative of individual shares is that they can be called or default (I have had both happen to me)...

PFFA cannot...

 

[richardsok]

True, Tex -- and that is why I did not return to PFFA until a week or so ago when it was just starting to recover from a sharp dip. Not many respectable individual preferreds can compete with a 9.5% yield. You lock in the rate, but you don't have to lock in your ownership. It usually keeps a tradeable chart pattern with moving averages giving good guidance.

PFFA Interactive Stock Chart | Virtus InfraCap U.S. Preferred Stock - Yahoo Finance

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[Free To Canoe]

I am thinking about putting some money into bank preferreds
How safe are bank preferreds? I see that the B of A perpetual and the JP Morgan series have the same agency rating yet the B of A is paying a higher market yield. Are both safe during the Great Depression?
There are many knowledgeable here but BobandSherry are the self proclaimed bank people. Or maybe put some more in ALL-B? The 3 month sofr should be stable for a while.