These Monthly Payers (up to 9.8%) Smell What The Fed Is Cooking

The Fed is cutting, and that’s bullish for preferred stocks and their big payouts.

Preferreds are part stock, part bond. These hybrids trade on regular exchanges under normal tickers. They pay dividends and represent ownership, but their income stems from “bond” DNA.

Because of that, preferreds often trade like bonds. That’s why they shine when rates fall.

Let’s discuss three preferred funds dishing divvies between 7.2% and 9.8%. And oh by the way, these funds pay monthly.

This post originally appeared at Contrarian Outlook.