#preferred-stocks

#preferred-stocks

iShares Preferred and Income Securities ETF ( NYSEARCA:PFF) offers investors a 6.4% yield by investing in U.S. preferred stocks and income-producing securities. With $14.2 billion in assets and an 18-year track record since 2007, PFF provides monthly income through a diversified portfolio of preferred securities issued primarily by financial institutions and REITs. The fund charges a 0.45% expense ratio and maintains no leverage.

Generating a steady and hefty stream of income is a key factor in any investing strategy. And to reach this goal, many turn to dividend paying stocks. A dividend is a regular payment a company makes to shareholders out of its profits. But it can be difficult and time consuming to analyze and handpick individual dividend paying stocks. That's why many investors seek out dividend paying exchange-traded funds (ETFs).

Investors have been anxiously waiting for September, and it's finally here. The Federal Reserve has been hinting for months that September is when it will start to cut interest rates, and betting markets are also convinced, with over 80% agreeing on a 25bps cut. The Fed has tacitly gauged public sentiment to guide its decisions, so the cut will likely happen.