Preferred Stocks are Yielding 8.5% But Here’s The Leverage Risk Hiding Inside PFFA

If you own Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA) for the income, the question that matters is whether that fat distribution will still be there next year. PFFA currently trades near $21 and pays $0.1725 per share each month, which annualizes to roughly $2.07 and puts the yield in the 9.5% neighborhood. That is ... Preferred Stocks are Yielding 8.5% But Here’s The Leverage Risk Hiding Inside PFFA