This Mutual Fund Yields 5.5% With a Focus on Preferred REITs

Salient Select Income hunts for undervalued real estate investment trusts.

With interest rates scraping bottom, investors have been flocking to preferred stocks. Like bonds, preferreds pay a fixed rate of interest. But because preferred-stock holders are behind bond investors in the pecking order for a claim on a failed company’s assets, preferreds are riskier than bonds and, accordingly, pay more interest. And like bonds, prices of preferreds move in the opposite direction of interest rates, making preferreds dicey bets if you expect rates to rise.

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Ryan Ermey
Former Associate Editor, Kiplinger's Personal Finance

Ryan joined Kiplinger in the fall of 2013. He wrote and fact-checked stories that appeared in Kiplinger's Personal Finance magazine and on He previously interned for the CBS Evening News investigative team and worked as a copy editor and features columnist at the GW Hatchet. He holds a BA in English and creative writing from George Washington University.