3 Preferred Funds to Play the Powell Pause, Yields up to 9.2%

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3 Preferred Funds to Play the Powell Pause, Yields up to 9.2%

The Fed “pause” is on—and that means we’re this much closer to the first rate cut since the COVID-caused race to zero.

It’ll soon be “game on” for fixed income of all sorts. And that includes one class of stock that has been kicked deep into value territory—giving us a potential one-two punch of high income (6.9% to 9.2% yields) and a violent bounce off the bottom.

More on these sweet payouts in just a second.

A High-Yield Way to Ride Powell’s Coattails

Federal Reserve Chair Jerome Powell and his henchmen at the central bank recently made the call to keep the benchmark fed funds rate level—a clear acknowledgement that the economy is indeed slowing.… Read more

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How Big Do You “Prefer” Your Dividends? 7%? 8%?

Mere “common stocks” fell 18% in last year. But these preferred shares are set to do better. Especially for contrarian income seekers like us.

I’m talking about safe 7% to 8% yields. Backed by good old fashioned cash flows. With double-digit price upside, too, as these share prices bounce back after a rough run.

A quick primer if you’re new to preferred stocks. They are part stock, part bond—and all yield, as we’ll see in a minute.

Preferred stocks trade around a par value and deliver a fixed amount of regular income, just like a bond. They don’t have any voting rights, which also is like a bond.… Read more

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3 Pullback-Proof “Preferred” Payouts Averaging 7.4%

Is this a quick (buyable) blip? Or the next bear market?

While the Wall Street suits guess away, we can do better than the buy and hope crowd. After all, why hope when we can secure our retirement with sustainable cash flows? I’m talking about yields of 6%, 7% or even 8% or more that barely blink when the markets melt down.

These investments are easy to buy. In fact, we purchase them just as we would a mere “common” stock. But here, we’re looking past the obvious to purchase these preferred payouts (yielding 7.4% on average, we’ll talk tickers in a moment).… Read more

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The Best, And Worst, Ways To Buy Preferred Shares

As you near (and enter) retirement you probably favor bonds, which provide income with less drama than stocks. However, less drama means less potential upside. With retirees living longer than ever before, it’s important to not go too conservative too early in life. And fortunately today, even 65 or 70 may be too early!

One suggested solution for our long life expectancy “problem” is to stay with stocks longer. But stocks can go down as well as up and a big pullback can inflict permanent damage on a portfolio.

So, we want to capture the dividends that stocks pay and the upside potential that they provide by minimizing our downside risk.… Read more

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