Retire With Two 9% Picks From Your Favorite Income Machine: ECC

2025-05-22 12:50:15 ET

Summary

• Eagle Point Credit's common stock is unattractive due to high fees and poor risk-adjusted returns, despite its popularity among retail investors.
• I recommend two ECC fixed-income products—ECCC and ECC.PR.D—each offering yields above 9% and higher in the capital structure than common stock.
• ECCC provides lower duration and cumulative monthly distributions, making it a solid choice for risk-conscious investors.
• ECC.PR.D offers a 9.11% yield, fixed long-term dividends, and better protection, making it a superior alternative to ECC's common stock for income investors.

CLO stocks are among the favorite asset classes for retail investors. Companies like Eagle Point Credit Company ( ECC ) are still of interest to the public, even though they charge high fees and typically provide low risk-adjusted returns. We think they get more attention than they deserve. While we're not fans of their common stock, we like some fixed-income instruments they issue. Today, we'll introduce you to two ECC fixed income products that offer yields above 9%:

- The 9.23% term preferred stock ( ECCC )...

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