You can get about 5% in a Preferred share fund (Fidelity Focused High Income Fund FHIFX or about 4.5% in a Bond Fund (Fidelity Strategic Income FSICX). This is independent of the increased NAV share price. You can look it up, by I think they are averaging about 6% annually with these two funds. The best thing, I think, is to just buy the preferred shares themselves.

With a par value of 25, there are many offerings that pay between 7 and 8%. Check out Ford preferred, Bank of America Preferred, JP Morgan, Barclays, GM, Credit Suisse etc. If you look at a couple of the high income/dividend funds and compare the top ten holdings of each fund, you will probably see many of the same 'faces' in each fund. Simply buy those preferreds that you see in all of the funds on your own and you will make an extra 1% over the managed funds.

The downside is limited (unless the company goes bankrupt) to the par value in the case of a company recall of the shares.

You can also take some of your cash in invest in a Business Development Unit such as Blackrock Capital (BKCC) or Annalay Capital or Main Street Capital (MAIN). These payers usually pay >8%. They are required by the IRS to payout to the shareholders, 90% of their proceeds. There is more risk involved in these equities, so DYODD. However, if you balance a portfolio so that you have something like 50% in a managed fund, 30% in individual preferreds and 20% in BDUs or capital management funds you will come out with around ann 8% average annual return.

As always, take financial advice from a pilot with a grain of salt. After all, we were all dumb enough to choose this as a career instead of marrying rich.