TRP - DFP: Great Income Fund But Premium Valuation Remains Off-Putting

• Investors continue to struggle with an inability to generate any significant amount of income from their portfolios.
• DFP invests in a portfolio of preferred stock and fixed-income securities to help investors overcome that problem.
• The fund is heavily weighted to the banking sector but this is certainly not unusual for a preferred stock fund.
• The fund is generating more than enough money through net investment income and capital gains to cover its distributions.
• The fund trades at a premium valuation, which reduces its appeal.

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