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Augmented Income Strategy: Navigating the Yield Hierarchy

In the world of investing, labels can be tricky. While many identify strictly as "Traders" or "Buy-and-Hold Investors," I sit at the intersection of both. My Augmented Income Strategy (AIS) is built on the philosophy that while every asset is technically for sale if the profit is right, the primary goal is to secure income that consistently outperforms High-Yield Savings Accounts (HYSA) and standard Treasuries.

The "Security Darlings": Deep Dive on PFF and PFFV

When we talk about safety in the AIS, we look toward the Preferred market. Preferred shares sit above common stock in the capital structure, meaning in a bankruptcy scenario, these holders are paid out before common shareholders.

Two of my core monthly acquisitions are PFF and PFFV:

  • PFF (iShares Preferred & Income Securities ETF): This provides broad exposure to the preferred market. It is my baseline for stability.
  • PFFV (Global X Variable Rate Preferred ETF): The "V" is critical here. It indicates variable rates. With the economy currently on watch and interest rate uncertainty looming, PFFV’s variable nature helps protect the principal value when rates shift, making it a focus of my current accumulation.

My AIS Candidates at a Glance (March 2026)

Ticker Ex-Div Pay Date Amount Price Yield
SCM2/27/263/15/26$0.34$9.0617.61%
BGS3/31/264/30/26$0.19$5.1114.87%
AGNC2/27/263/10/26$0.12$10.4313.81%
OBDC3/31/264/15/26$0.37$11.3413.05%
RYLD1/18/261/23/26$0.16$15.2212.42%
FTF3/24/263/31/26$0.18$5.9812.34%
QYLD11/28/251/23/26$0.18$17.7412.06%
FCT3/02/263/16/26$0.29$9.7711.87%
WES2/02/262/13/26$0.91$41.488.78%
CAG4/27/265/01/26$0.35$16.288.60%
WEN3/02/263/16/26$0.14$7.097.90%
PFFV1/24/262/06/26$0.14$22.207.43%
CPB4/02/265/04/26$0.39$21.747.18%
ETD2/11/262/25/26$0.39$22.356.98%
KHC3/06/263/27/26$0.40$22.966.97%
UPS2/17/263/05/26$1.64$97.546.73%
PFF1/23/262/05/26$0.18$30.895.88%

Cautionary Watch: UPS

Despite the yield, I am cautious with UPS. The company faces a difficult environment as massive retailers move delivery in-house and consumer behavior shifts toward those direct-to-retailer options.

Disclaimer: I am an independent investor and blogger, not a licensed financial advisor. The information provided here is for educational and entertainment purposes only and reflects my own personal "Augmented Income Strategy." All investments involve risk, and past performance is no guarantee of future results. Many of the dividends discussed are taxed as unqualified (ordinary) income. Please consult with a financial or tax professional before making any investment decisions.
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