PGF. Maybe you could explain this to me. This yahoo site claims a 10% annual yield. I wonder what it really is? And how do you really know? Do they tell you they expected div payout for the next qtr on their website perhaps?
finance.yahoo.com
I looked at the holdings page
finance.yahoo.com
and just looked up a few of the holdings. I may not have the exact pref security, but from my experience, it doesn't matter if you buy a G, H or W, they all yield around the same. For BAC pref shares, for example, i think they are yielding 8.6% based on today's price. And BAC is 11.5% of the ETF's holdings.
MetLife Pref, at 4.3% of holdings, yields 7%
Wells Fargo, 4.8%, yields 7%
Barclays, at 6%, yields 5.5%.
So there's 25% of the portfolio, yielding around 7%. I do not know how they pay 10%. But if you buy the underlying pref stocks, you only get 7%.
Is the ETF leveraged? Is the 10% yield bogus? Why not just buy your own mix of pref shares and avoid the ETF fees?
regards,
grommit
Right now my mix of pref shares is yielding 11/5% based on today's prices. And the yield was much much higher a few months ago, when prices were 1/2.
FYI -- pcx vs two reit pref stocks. for what it's worth...
finance.yahoo.com |
