iShares Preferred and Income Securities ETF (PFF)

High-yield investments paying monthly dividends are highly popular with income investors. However, not all are worth buying. I look at two popular high-yielding monthly-paying dividend investments and share why one is a buy and one is not.

We discuss the secrets to building a near-perfect dividend snowball. We discuss many of the best dividend machines for building a dividend snowball portfolio. We share a model portfolio that yields 8% and should not only provide sustainable income, but also grow its dividends over time.

PFF is the largest preferred stock ETF, holding nearly 450 securities, offering broad diversification and a focus on income generation. The fund's portfolio is mainly preferred stocks, baby bonds, and hybrid securities, with a significant portion trading below par, presenting capital appreciation potential. PFF is suitable for investors seeking moderate risk and balanced returns, especially those looking for exposure to higher coupon instruments as rates rise.

This is a sector that deserves active management: PFF doesn't offer that, which in my view makes it less competitive than solutions like PFFA. The returns speak for themselves: if you're selecting preferreds for yield, let's not forget they're equity-like, so why not just look at high yield? If one assumes that the callable feature provides a hedge against rising rates, performance doesn't confirm it. For hedging, there are purpose-built instruments like RISR.

Exchange-traded funds (ETFs) make investing easy. These managed funds come with built-in diversification.

High-yielding, monthly-paying dividend machines are music to a retiree's ears. We share three that have proven to be dependable dividend payers and total return outperformers over time. One is from the infrastructure sector, one is from the real estate sector, and one is from the preferred sector.

Most preferreds are very unattractive on a risk-adjusted basis in my view. However, there is one that is currently a golden buying opportunity. I detail why.

The iShares U.S. Preferred Stock ETF may appeal to yield chasers, but it's not an ideally diversified fund.

FLC is a closed-end fund with a focus on preferred stocks and hybrid securities, primarily in the banking and insurance sectors, offering a 6.11% annualized distribution rate. FLC trades at an 8.75% discount to NAV and has outperformed PFF despite being a leveraged vehicle, exploiting its structural advantage. The fund's portfolio includes OTC preferred stocks, which offer better pricing opportunities compared to exchange-traded ones, enhancing its performance through its expertise.

Income-based investors often devote a large part of their securities research time looking at bonds.

These 6 dividend powerhouses pay massive yields, offering a mix of high yield and inflation-beating growth. This strategy could generate far more retirement income than the 4% rule—while keeping your principal intact. These picks are well diversified and yield up to 12%, along with inflation-beating dividend growth.

We categorize fixed-rate preferred stocks by redemption risk, yield, and investment grade, highlighting the importance of understanding call risks and yield expectations. Preferred stocks below par with yields between 5%-10% offer varying risks, with higher yields often linked to MREITs and speculative investments. Investment-grade REIT preferred stocks and CEF preferred stocks are safer but offer lower yields, with hotel REITs providing higher yields due to market discrimination.

Retirement planning can feel overwhelming, but small adjustments like delaying retirement or focusing on high-income investments can make a big difference. In this article, I share three strategies that balance income and safety, perfect for retirees who need consistent cash flow without excessive risk. Whether you're behind on savings or just want peace of mind, these ideas can help you build a retirement plan that works for your needs.

Low-volatility, dividend growth stocks offer long-term outperformance and a favorable risk profile, despite lower yields during bull markets. Dividend growth portfolios can significantly increase yields over time, making them a strong choice for retirement-focused investors. The 4% rule remains a valid strategy for retirement, but adjustments may be needed due to increasing life expectancies.

2025 marks a time of uncertainty for many investors—despite stellar performance in 2024 and a post-election bump that lasted through mid-December, the S&P 500 and the market as a whole face increasing geopolitical turmoil, a potential change to the regulatory environment for many industries alongside a new administration, haziness around the near-term future of interest rates, the ongoing impact of the AI revolution, and more. It's understandable that many investors might take a defensive approach in the new year.

I explored retirement-focused investing, emphasizing the importance of income stability and growth. ETFs like SCHD and JEPI offer diverse approaches to these goals. Selecting the right retirement investments depends on individual goals, risk tolerance, and financial situations. ETFs can simplify this process for most investors. My ETF picks prioritize high-quality income with moderate growth. They suit retirees seeking reliability, diversification, and efficient portfolio management.