TRP - DFP: Still Overpriced But Solid 6.69% Yield

• Retirees continue to struggle with difficulty generating income due to the longstanding policies of the Federal Reserve.
• DFP invests in a very heavily diversified portfolio of preferred stocks to provide a 6.69% yield.
• The fund is heavily exposed to the financial sector but this is not surprising considering that banks are by far the largest issuers of preferreds.
• The fund had to cut its distribution twice in the past year but it pays the distribution entirely out of income, making it somewhat appealing.
• The fund trades at a very large premium to NAV.

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