2024-06-03 17:30:00 ET
Summary
- The John Hancock Preferred Income Fund offers an attractive 8.88% yield, one of the highest among preferred stock funds.
- The fund's current yield may not keep up with rising living costs if held in a taxable account.
- The fund has outperformed its benchmark indices and has a relatively stable distribution history, but its portfolio allocation and valuation should be considered.
- The fund has a surprisingly large corporate bond allocation, which might be a drag on its performance. However, it appears to be reducing its overall portfolio risk.
- The fund has been managing to cover its distribution in the current fiscal year, but there is a chance that this could change if the market corrects.
The John Hancock Preferred Income Fund ( HPI ) is a closed-end fund that can be purchased by income-focused investors as a method of achieving their goals that involve the generation of a large amount of income from the assets in their portfolios. The fund manages to do fairly well at this, as it currently boasts an attractive 8.88% yield at the current share price. This is one of the highest yields currently possessed by any preferred stock fund, as we can clearly see here:
Fund Name | Morningstar Classification | Current Yield |
John Hancock Preferred Income Fund | Fixed Income-Taxable-Preferreds | 8.88% |
Cohen & Steers Select Preferred & Income Fund ( PSF ) | Fixed Income-Taxable-Preferreds | 7.76% |
Flaherty & Crumrine Preferred Securities Fund ( FFC ) | Fixed Income-Taxable-Preferreds | 7.22% |
First Trust Intermediate Duration Preferred & Income Fund ( FPF ) | Fixed Income-Taxable-Preferreds | 9.31% |
Nuveen Preferred & Income Opportunities Fund ( JPC ) | Fixed Income-Taxable-Preferreds | 7.95% |
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For further details see:
HPI: This Fund Is Navigating The Current Environment Well, But It Is Pricy