Cohen & Steers Duration Preferred & Income Fund

LDP

Market cap $619M

Cohen & Steers Limited Duration Preferred and Income Fund (LDP) offers a 7.2% yield and trades at a 3.41% discount to NAV. LDP's reliance on net realized gains and leverage, along with high exposure to below investment grade securities, creates sensitivity to interest rates and market declines. Dividend sustainability is questionable, as LDP has only covered its payout with earnings in one of the last five years, making income less reliable.

Preferred securities and baby bonds enable steady, lower-risk income. The fixed-income asset class is currently deeply discounted due to elevated interest rates, but the tide is expected to turn soon. We discuss two picks with up to 9% yields, paying you to wait for the rate policy shift.

LDP offers a 7.53% yield, higher than the preferred index. It also beats most of its peers in total return, despite a lower headline yield and conservative management. The fund's lower leverage and conservative strategy have resulted in less downside during rising rates, making it attractive for risk-averse investors. LDP trades at a 5% discount to NAV, which is narrower than its historical average but still reasonable compared to peers.

The Cohen & Steers Limited Duration Preferred and Income Fund offers a 7.85% yield, higher than domestic fixed-income indices but lower than similar closed-end funds due to lower leverage. Despite a recent 2.82% share price decline, the fund outperformed the preferred stock index, showcasing effective management and strategy. U.S. preferred stock has become less attractive to foreign investors over the past few months, and rate cuts by the Fed could make this problem worse.

The Cohen & Steers Limited Duration Preferred and Income Fund offers a high yield of 7.63%, outperforming most preferred stock index funds but lagging behind other preferred closed-end funds. The fund's performance has been disappointing recently, underperforming the preferred stock index as well as some peers. The fund is almost entirely invested in preferred securities, which sets it apart from peers that invest in a mixture of preferred stock and corporate bonds.

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The Cohen & Steers Limited Duration Preferred and Income Fund offers a 7.27% yield, attractive compared to major indices but lower than many peers. The assets held by this fund offer no protection against inflation, which the market believes could pose a risk as the Fed cuts rates. The fund employs leverage, currently at 32.80%, to boost returns. The leverage is lower than peers.

Traditional pensions are rare, defensive income investments crucial for retirees. Fixed income offers multi-year high yields, and the market is yet to appreciate its value proposition in a low-interest rate economy. We discuss two monthly paying diversified funds with yields up to 7%.

We take a look at the preferreds sector across individual preferreds and funds. Preferreds offer high tax-adjusted yields for high-rate taxpayers and can act as "drier-powder" options. Individual preferreds offer advantages over passive ETFs in the $25-par market.

Cohen & Steers Limited Duration Preferred and Income Fund, Inc offers a 7.85% yield, which is lower than many of its peers. Preferred stocks have been gaining year-to-date despite falling bond prices and yields. This is highly unusual and could pose a risk for investors. The LDP closed-end fund's shares have outperformed its portfolio, but investors should consider the fund's valuation and potential risks before investing.