iShares S&P U.S. Preferred Stock Index
Bonds continue to be a terrible place to put money, and that’s not going to change in 2013. With yields practically nonexistent, inflation creeping up on us while not being reported on, and income-producing securities facing questions with the fiscal cliff, you want to be in preferred stocks.
The iShares S&P U.S. Preferred Stock Index (NYSE:PFF) yields 5.75% as of now, and contains preferred shares for many companies that are in solid financial shape. Since common dividends get suspended before preferreds do, you’ll have ample notice if anything untoward happens regarding any given preferred stock selection.
With an ETF, you are also protected because of the diversification. This ETF holds preferreds in top banks like Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC), but also has holdings in telecom and real estate.