Should I Buy iShares Preferred and Income Securities ETF (PFF)? Finance YouTuber Analysis

The YouTuber suggests PFF for its 4.6% dividend from preferred shares, which offer higher yields and must be paid before common stockholders. He notes that preferred shares can also offer growth potential if convertible and that PFF has a low P/E ratio and half the volatility of the broader market.

“another great monthly Dividend Fund in that Alternatives idea it's the I share's preferred and income securities ETF took her PFF with its 4.6 dividend”

The YouTuber recommends PFF as another option for preferred shares, offering a similar theme to SPFF but with a higher yield of 4.5%. It provides easy access to a market segment often neglected by investors, holding 512 preferred securities with a low average price-to-earnings ratio and lower volatility than the broader stock market, primarily weighted towards the financial sector.

“The pff holds 512 preferred securities with an average price to earnings ratio of just 9.5 times which again is about half the market average.”

The YouTuber recommends investing in preferred shares through ETFs like PFF for higher dividend yields and diversification. They explain that preferred shares offer a set dividend that must be paid before common stockholders and have a higher claim in liquidation, providing a balance of income and some growth potential.

“an example here would include the ishares preferred and income securities etf ticker pff which pays a 4.6 dividend yield and a total return of around 6 percent annually”