Power Shares Financial Preferred (PGF-$18.50) is an Exchange Traded Fund that owns a $1.72 billion portfolio of BBB, BB and B rated preferreds that comprise the Wells Fargo Hybrid Financial Preferred Index. Ownership of preferreds like Credit Suisse, ING Groep, Bank of America, HSBC, Met Life, PNC Financial and Wells Fargo, enables PGF to pay a monthly dividend of 9.1 cents ($1.09 annually) yielding 5.9 percent. Its cousin, PowerShares Preferred Portfolio (PGX-$14.81) owns a $1.98 billion portfolio of A, BBB, BB, B and NR, rated preferreds from the BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index (now that's a mumble). Issues like Barclays, JP Morgan Chase, Morgan Stanley, Citigroup and Synovous, allow PGX to pay 7.7 cents a month (92.4 cents annually) yielding 6.23 percent. Either is fine. And if you girls decide to visit the Florida beaches, stop by for a cup of tea.
Please address your financial questions to Malcolm Berko, P.O. Box 8303, Largo, FL 33775, or email him at firstname.lastname@example.org.