PSF - PSF: Continues To Underperform Peers And Another Failure To Cover The Distribution

2024-05-21 16:38:13 ET

Summary

• Cohen & Steers Select Preferred and Income Fund has a yield of 7.82%, in line with peers but lower than some major competitors.
• The PSF closed-end fund's relatively low yield could pose problems, as it might not be actually beating inflation. This is a very acute problem for taxable accounts.
• The fund's share price has declined as expected, but its distributions have helped offset losses, resulting in a 2.80% total return since January.
• The fund continues to underperform its peers, as it was the worst-performing preferred stock CEF over the past four months.
• The fund failed to cover its distribution last year, but it has started to trade at a reasonable discount so the valuation has improved.

The Cohen & Steers Select Preferred and Income Fund ( PSF ) is a closed-end fund, or CEF, that income-focused investors can purchase as a method of achieving their income goals. The fund does fairly well at this task, as it currently boasts a 7.82% yield. This is in line with many of the fund’s peers, but this one is far from the highest-yielding option that is available to investors in preferred stock funds:

For further details see: