My Newest Holding Pays Monthly Dividends and Yields Almost 10%
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- / dividendbull
I recently bought into a new position in my portfolio that yields over 9%, pays monthly dividends, and exposes me to an asset class I haven't previously held any investments in. In my opinion, preferred stocks are some of the most ideal holdings for people who are either retired or just want a steady dividend. So in this video, I'm gonna go into detail about why I expanded into preferreds, why I chose this ETF out of all the others that exist, and where I think this investment will go in the future.
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I would think that a major benefit of dividend investing is that calculating portfolio size needed is not relevant. We don't care about the value of the portfolio. We care about the sustainable income it pays. As you invest you can gradually see the income rise as you invest more and pull the retirement trigger when it's high enough regardless of the market sentiment.
Calculating the portfolio size needed is very relevant. - How else do you know how much to contribute?
By calculating how much additional income the contributions produce and estimating how that income rises. the capital value will fluctuate up and down over time so the amount of income new additions give you varies. so capital value being high with a market yielding 2% is no worse for retirement than the same portfolio at a different timepoints where the capital value is half and so the yield is 4%. so long as the yield is sustainable in real terms the capital value being half does not matter. its the same income stream at a different moment of low market sentiment vs high market sentiment.
I'm sure the idea of an investment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 880k within 16-months from an initially stagnant Portfolio.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Because of dividends, I first began investing in stocks. It's important, in my opinion, to be able to live off of dividends without selling if you invest and make other income in addition to payouts. It suggests that you may pass that down to your kids and give them a leg up in life. Over the years, I've invested over $600k in dividend stocks; I continue to buy more today and will keep doing so until the price drops even further.
Hearing from an experienced investor who has survived adversity and prevailed is always motivating. It may be frightening when your portfolio goes from green to red, but if you have invested in strong firms, you should maintain growing them and stick to your goal.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
Thanks for the tip.
High interest might be useful for insurance company’s as they charge higher premiums but costs from deflation are lower
1/ The management fee is 0.80% NOT 2.52%. The rest is interest expense. 2/ Excellent overview of PFFA! I first learned about this fund from the Armchair Income channel and happy to see it covered here.
Doesn't matter what % the management fees are -- Gross Expense Ratio
As of 02/28/2024
2.52%
I added this to my portfolio on a previous suggestion you made in one of your videos and like the monthly dividend. Great video by the way as usual. I found you on TH-cam and have used your information to completely eliminate all my holdings and start over. I held many of the stocks you said to stay away from and followed your suggestions. What a difference you have made for myself and my wife. Before I buy a stock I always look at your videos and scan your library for any comments you may have had. I now research and listen to other people on TH-cam and then check comments you have made before pulling the trigger. Thank you again for all your hard work.
I have owned 1,000 shares of PFFA for about 3 years and it pays on time like clockwork and the dividen never went down even during the pandemic.
that's good to hear!
That means you made about 2100 bucks in 3 years.
I like PFFA too, but it was paying 19 cents prior to the pandemic and got knocked down to 15 cents in March 2020. Thankfully they've been increasing every year since.
@technologyartist8917
1000 × 0.165 × 12 × 3 = 5,940
I'm not sure how you got "about 2100 bucks"
I love PFFA, good yeild, stable price, diversified and exposure to a different asset class
Thanks for the update, keep up the good work.< Learned a lot from my market journey, especially the importance of living within one's means. With Flora Elkin’s guidance, my nest egg has grown to a 7-figure sum. My advice - get an analyst for better financial trade decisions and peace of mind
I've just looked up her full name on my browser and found her webpage without sweat, very much appreciate this
It is really refreshing to see a comment about Flora Elkin.I have worked with her also for months now, reached out after reading more about her on the internet. she simplifies matters, whether it's a market surge or drop; her approach consistently keeps you ahead of the trend, She's a guru i'll say
Nice to see this here, Flora Elkin's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her siignals are top notch
Over the years, I've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Flora's insights. It's akin to finding a diamond in a coal mine.
This stock is one of the few covered call ETF's with a long history over 5 years, which provides a great deal more confidence in the stability of both its share price and its dividend distribution, especially when compared to a great many others that are advertised as offering extremely high yields, but are only a few months old and have no such history.
Thank you for the video. Always learn something when I see your videos.
Great analysis! Thanks!
Nice stock! Interesting
I appreciate the information and I’ll check into this
Great explanation! Only preferred etf I hold.
Great video... Thanks
Thx 🎉 wasn't aware of the steady, consistent dividends. Seems to be an income ETF to consider... at least to think twice about.
Hey! Thanks for always sharing your ideas! I would like to hear from you what you think about a future market crash, and what are you doing to protect yourself? Thank you!
I like your analysis. I hold PFXF. But think I will add this one two. I only have 1% in preferred. Remember management is only .8% management fee the rest of the fee is for leverage and options.
Extremely high management fees
2.52% expense ratio.
@davidduffy2046, as distasteful as the management fee is, we still get a 9% yield. We could pay lower fees somewhere else, but we'd get a much smaller yield.
That's high but not extremely. I've seen some funds as high as 4% or more!
@@SomeUserNameBlahBlahmost of that is interest, not management fees.
A.I. giving you investment advice.
I believe the expense ratio includes the interest on the leveraged portion of the fund.
A preferred stock ETF might be a good choice in this overvalued environment as they offer lower downward risk and safer dividend.
Correct. The management fee is approximately 1.4% after interest expenses. It's high, but the yield rationalize a higher management fee.
Great choice!
Stable price, high yield, etf. Perfect income investment right here.
Another excellent video. Need to get up to 100 shares of SPYI before going over here. Thank you. Your advice is invaluable.
love spyi .
SPYI one of my main focal ETF's for investing this year too.
Would love a comparison video between this and SPYI. I have and continue to build my position in SPYI but have never heard of this one.
@Ashwinmadhuz I had not heard of it either. The advantage we have is that he seems extremely knowledgeable and helpful. I have been following him for over a year, and only one he mentioned is down, but dividends will break it even.
@@crissdizick9403 yeah, 10% yield against a 2.52% expense ratio?? I’ve got $MO and $SPYI that give me the same if not more at lower risk and for a lesser expense.
My largest preferred ETF position. Considering they launched at $25 a share I think the upside over the next 3 years is significant considering the fed has not started cutting rates. I will say that if rates go up instead of down(which i doubt) this is not the equity you want to hold as leverage(the fund is 30% levered) works against you. I own it at an average of $18.50.
I hold a large share of PFFA in my portfolio. Very happy with it. Plan to continue my monthly reinvestment of dividends.
I've been eying Preferred ETFs to add to my Roth IRA. I'm looking to use one to replace one I am not happy with right now.
I don’t own any preferred ETFs but I do own 3 different companies preferred shares
ADC-A
DLR-K
ABR-D
I got 250 shares when it dipped at $19, I'm confident that within 2-3 years it will get back to its price of $24-$25. Even if it doesn't, it should stay stable and pay regular dividends so all is good!
Will this ETF allow the reinvestment of dividends if the dividend would buy an uneven number of shares?
I purchased my thousand shares of PFFA in 2022 so I am down a bit but enjoying the dividends.
Started buying 9-2021 I’m up to 600 shares $1200 in dividends a year
This looks heavy on the energy sector which, for me, is attractive to broaden my portfolio.
PFFA doesn't look too bad if you like steady income. It does beat the all qualified div payers MO, VZ, and T by a fair margin the past 6 yrs. VZ and T seem to hold up better if the market has a meltdown.
PFFA has a 2.52% expense ratio.
Are the high fees justified?
ETFs do not generate the taxes a mutual fund can. Any perceived "management fee" difference is offset. I would worry more about management fees of mutual funds than ETFs.
I have been in PFXF for the last 6 months. Pays 9.2 at my cost basis.
Do a video on Engie a french utility paying 9%. Stable and safe imo
It it his channel and as such does not need to heed rude demands for videos.
Interesting. Their dividend still hasn't recovered to it's pre-covid levels. It would seem they can't weather downturns too well.
I knew it was going to be PFFA
At the time I watched this video it's only at 3.7%
High fees and 5 year at negative 19 percent.
What is interest expense? Is it a fee on interest earned, a withholding tax? What, WHAT?
Why bother with it? It has lost 8 pts since June 2021 as many others have like PGX. What is happening is the rating of many perferred have declined. There very few AAA quality securities left.
I hold a fair amount of pff.
I owned PFFA not too long ago when the expense ratio was 1.40%, but now at 2.52%, I will pass......
PFFA expense ratio is 2.54% . No thank you .
Why would pay 2.52% expense ratio netting you down to about 7%????
Expense ratio 2.52%? Must be crazy😢
Has a gigantic expense ratio of 2.53 percent. ouch
The real exp is < 1%. Most of that is lending costs due to usage leverage.
I saw that, too. Plus, with it being so closely managed it’s probably not the most tax-efficient, either.
2.53 percent expense ratio is way to high. Stupid if u think this a good investment 😂
Stupid to think it is okay to say "expense ratio way _to_ high". I think you meant "way *too* high".
Hint, if you are going to call someone stupid then do not use grammar that makes *you* look stupid. 😋
@@absurdnerd7624”Your” kidding. “Their” trying “there” best.
how about ecc
How is your ABR doing? :)
I am tempted by PFFA, however I'm thinking the closed end fund RNP could be a better option, but it has around 50% of the portfolio in REITs and many more holdings.
I looked up the history for it for the last year and it cycles between 18-21. It is not bad if it gives distributions and does this. You just do not want the share price of the ETF to plummet and hire dividends. Those ones are just problems.
You bought too early. Looks like pps is going down, with support around $19. jmo