PTA - PTA: This Fund Could Be Vulnerable To A Market Correction
2024-04-16 15:12:54 ET
Summary
- The Cohen & Steers Tax-adv Prd Sec and Inc. has a current yield of 8.78%, which is lower than some of its peers.
- The PTA closed-end fund's recent share price performance has been underwhelming, with a decline of 0.97% since the previous article was published.
- The fund's leverage ratio is above the preferred level, but it is lower than many of its peers.
- The fund failed to cover its distribution for the second year in a row, although it has been okay for the past few months.
- There could be some risks here as preferred stock appears vulnerable, but the fund's larger-than-average discount could alleviate some of the near-term concerns.
The Cohen & Steers Tax-adv Prd Sec and Inc. ( PTA ) is a closed-end fund, or CEF, that income-focused investors can employ in pursuit of their objectives. The fund does reasonably well in this respect, as its 8.78% current yield is higher than many other things in the market. However, it is far from being the most attractive preferred stock fund in terms of yield. We can see this simply by comparing this fund’s yield to that of some of its peers:
| Fund |
| Morningstar Classification |
| Current Yield |
| Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund |
| Fixed Income-Taxable Preferreds |
| 8.78% |
| First Trust Intermediate Duration Preferred & Income Fund (FPF) |
| Fixed Income-Taxable Preferreds |
| 9.91% |
| Flaherty & Crumrine Dynamic Preferred & Income Fund ( DFP ) |
| Fixed Income-Taxable Preferreds |
| 7.22% |
| John Hancock Preferred Income Fund ( HPI ) |
| Fixed Income-Taxable Preferreds |
| 9.63% |
| Nuveen Preferred & Income Opportunities Fund ( JPC ) |
| Fixed Income-Taxable Preferreds |
| 8.38% |