I became attracted to this ETF because of it's high percentage of dividends that qualify as long-term, qualified dividends. I don't recall the exact percentage, but it's something in the neighborhood of 62% of dividends being qualified. This means that 62% is treated as long-term capital gains. That's huge for high-income folks trying to reduce ordinary income and tilting earnings more toward long-term capital gains. For example, if you buy a REIT, the dividends are treated as ordinary income, while is you buy preferred stocks, sometimes (I am not sure of the sorcery used to qualify) a certain percentage of the dividends are treated as LT Cap gains. For PFF, it offers a higher percentage of dividends as LT Cap Gains as compared to many other ETF's I reviewed. I learned all about this on a YouTube Channel called DiamondNestEgg, which I find to offer excellent tutorials for income-focused investors.
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