- 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.
For further details see:
DFP: Great Income Fund But Premium Valuation Remains Off-Putting