PFD

Flaherty&Crumrine Preferred Income Fund (PFD) declares $0.0843/share monthly dividend, in line with previous.Forward yield 6.12%Payable Aug. 31; for shareholders of record Aug. 24; ex-div Aug. 23.Payable Sept. 30; for shareholders

Flaherty&Crumrine Preferred Income Fund (PFD) declares $0.086/share monthly dividend, in line with previous.Forward yield 5.36%Payable Feb. 26; for shareholders of record Feb. 19; ex-div Feb. 18.Payable Mar. 31; for shareholders

We believe the overall credit health of the preferred market remains strong.Fixed income markets have seemingly come full circle thus far in 2020.Preferreds with exposure to commercial real estate, consumer spending, and energy all still offer above-average yield and total return potential.

Steadily lower yields and heightened volatility make relative value opportunities an attractive alpha generation strategy in CEFs.We take a look at the relative value opportunities on offer in the preferreds CEF sector.A couple of rotation opportunities within the Flaherty fund suite are FLC over DFP and PFO over PFD.Additional frequent opportunities come up for John Hancock as well as Nuveen term CEFs.

Flaherty & Crumrine offers a successful line-up of preferred/fixed-income funds, showing strong rebounds from March's lows.The F&C line-up of funds have received boosts to their distribution over the last couple of quarters on the back of lowered interested expenses.We are taking an updated look at FFC today.

DFP is managed by Flaherty & Crumrine, a manager we like and offers a smaller premium and higher yield than some of its other funds.With the Fed keeping rates lower longer, preferred shares are quite attractive.The diversification and leverage of DFP make it an attractive addition to the fixed-income portion of a high-yield portfolio.

This is a report that I will be compiling each month broken down by sector and category.In this part I cover munis, preferreds and high yield.Part II will come out later.Each investor will need to assess whether they want to swap an existing CEF into one of these options.