- Eagle Point Credit's ECCB preferred stock pays 7.6%, higher than many fixed income funds pay their equity owners.
- And with more asset protection, earnings coverage and less risk.
- One caveat: its small market price premium to par (equal to about two months' distributions) could come back to bite us if it's called.
- But it shouldn't be called for at least three months (probably longer), given the fund just declared preferred dividends through year-end.
- And also went to the trouble and expense of issuing new ECCB shares as recently as June 2021.
For further details see:
ECCB: Collect An Equity Yield (7.6%) With Preferred Stock Safeguards