Published Tue, 29 Sep 2020 06:25:36 -0400 on Seeking Alpha
Seeking AlphaClosed End FundsFFC: Providing Attractive Monthly Income, Yielding 7.46%Sep. 29, 2020 6:25 AM ET|| About: Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (FFC), Includes: C, C.PK, C.PS, CPRJ, DFP, FLC, MET, MET.PA, MET.PE, MET.PF, PFD, PFF, PFOby: Nick AckermanNick Ackerman CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryFlaherty & Crumrine offers a successful line-up of preferred/fixed-income funds, showing strong rebounds from March's lows.
The F&C line-up of funds have received boosts to their distribution over the last couple of quarters on the back of lowered interested expenses.
We are taking an updated look at FFC today.
Written by Nick Ackerman, co-produced by Stanford Chemist
The Flaherty & Crumrine Preferred and Income Securities Fund (FFC) is currently trading around its average premium. This has come as the volatility of the last couple of weeks has brought the double-digit discount to a mid-single digit premium of 5.62%. Funds are generally avoided if they are trading at premium levels, though along with being around its 1-year average, this fund also even longer-term trades at slight premiums. That puts FFC at a place where an investor can feel comfortable holding or even adding a little bit during this time of volatility.
As for members of the CEF/ETF Income Laboratory, we have held FFC in the past. Currently, we are holding a similar fund, the Flaherty & Crumrine/Claymore Total Return Fund (FLC). This came after a swap trade from Flaherty & Crumrine Dynamic Preferred and Income Fund, Inc. (DFP) when the valuation levels presented an opportunity. Today, all three of these similar funds are trading around the same level of premium.
The investment objective of FFC is "to provide high current income consistent with preservation of capital." What I find interesting about this is that this is my primary objective as well. Many funds put in... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|FLAHERTY & CRUMRINE DYNAMIC PREFERRED ANDOME FUND||25.94||0.0||0.00||0.00||6.63|
|FLAHERTY & CRUMRINE/CLAYMORE TOTAL RETURN FUND||21.51||0.0||0.00||0.00||6.34|
|FLAHERTY & CRUMRINE PREF INCOME OPP FUND||12.10||0.0||0.00||0.00||6.20|
|FLAHERTY & CRUMRINE PREFERRED INCOME FUND||15.23||0.0||0.00||0.00||6.01|
|ISHARES S&P US PREFERRED STOCK INDEX FUND||37.21||0.0||0.00||2.08||5.60|
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