Invesco Variable Rate Preferred ETF Declares Monthly Distribution of $0.1121
The Invesco Variable Rate Preferred ETF, a popular exchange-traded fund (ETF) focused on providing investors with exposure to variable rate preferred stocks, has recently announced its monthly distribution for September 2023. The distribution amount is set at $0.1121 per share, maintaining the fund’s consistent track record of delivering regular income to its shareholders. This payment is scheduled to be made on October 1, 2023, to all shareholders of record as of the close of business on September 20, 2023.
For investors seeking steady income streams, the Invesco Variable Rate Preferred ETF has proven to be a reliable option. The fund is designed to invest primarily in variable rate preferred stocks, which are hybrid securities that combine features of both bonds and stocks. These instruments typically offer a fixed dividend rate that may adjust based on market conditions, making them attractive for investors who want to balance income generation with some level of flexibility.
Key Details of the Distribution
The distribution of $0.1121 per share reflects the fund’s commitment to delivering consistent income to its investors. To be eligible for this payment, shareholders must ensure that they own shares of the ETF as of the record date, September 20, 2023. Shares purchased after this date will not qualify for the current month’s distribution. Additionally, it’s important to note that the ex-dividend date for this payment is September 19, 2023, meaning that any shares traded on or after this date will not include the distribution payment.
Investors who hold the ETF in a taxable brokerage account will receive the distribution directly into their accounts, while those who hold shares in tax-advantaged accounts such as IRAs may have their distributions reinvested automatically, depending on their account settings. The regularity of these distributions makes the Invesco Variable Rate Preferred ETF a valuable addition to income-focused investment portfolios.
Understanding Variable Rate Preferred Stocks
The Invesco Variable Rate Preferred ETF’s focus on variable rate preferred stocks sets it apart from other income-generating investments. Preferred stocks are a type of hybrid security that typically offers a higher yield than common stocks but ranks senior to common shares in terms of dividend payments. Variable rate preferred stocks, in particular, offer a dividend that may adjust based on changes in interest rates or other market conditions, allowing investors to benefit from rising rates over time.
By investing in a diversified portfolio of these securities, the ETF aims to provide shareholders with a relatively stable source of income while minimizing exposure to the volatility often associated with traditional equity investments. This makes the fund an appealing choice for investors seeking predictable cash flow without taking on excessive risk.
Performance and Growth of the ETF
The Invesco Variable Rate Preferred ETF has established itself as a reliable option for income investors, with a history of delivering consistent monthly distributions. The fund’s focus on variable rate preferred stocks allows it to capitalize on changing interest rate environments, making it a flexible addition to a variety of investment strategies.
As of its most recent reporting period, the ETF has demonstrated steady performance, with a strong track record of maintaining its dividend payouts. This consistency has attracted a growing number of investors looking to balance income generation with the potential for modest capital appreciation. The fund’s assets under management (AUM) have also shown growth, reflecting investor confidence in its strategy and management.
Invesco’s Reputation and Investor Confidence
Invesco, the fund’s manager, is a well-established global investment management firm with a long history of delivering innovative investment solutions. The company’s expertise in actively managed ETFs has earned it a reputation for excellence, and its products are trusted by investors worldwide.
The declaration of the monthly distribution underscores Invesco’s commitment to meeting the needs of income-focused investors. By maintaining a consistent payout schedule, the Invesco Variable Rate Preferred ETF provides shareholders with the stability and predictability they seek in their investment portfolios. This approach has contributed to the fund’s strong reputation and investor confidence, making it a standout option in the competitive ETF landscape.
In conclusion, the Invesco Variable Rate Preferred ETF’s monthly distribution of $0.1121 per share is a testament to its dedication to delivering value to shareholders. With its focus on variable rate preferred stocks, consistent income generation, and strong management by Invesco, the fund remains a compelling choice for investors aiming to balance income and stability in their portfolios.
