We are live on ! Find out more

Nuveen Variable Rate Preferred & Income Fund

NPFD

Market cap $416M

17.21 USD

-0.07

0.41%

At close Updated Sep 28, 4:00 PM EDT

1 day

-0.41%

5 days

-3.04%

1 month

-8.36%

3 months

-7.77%

6 months

-2.66%

Year to date

-9.66%

1 year

-12.86%

5 years

-31.16%

10 years

-31.16%

About: Nuveen Variable Rate Preferred&Income is a diversified, closed-end management investment company. Its investment objective is to provide a high level of current income and total return. The fund invests a majority of its assets in variable-rate preferred securities and other variable-rate income-producing securities. The rest of its investments can be made in contingent capital securities or contingent convertible securities, convertible securities, corporate debt securities, U.S. government securities, residential and commercial mortgage-backed securities, fixed-rate preferred securities, senior loans and loan participations and assignments, sovereign debt instruments, debt securities issued by supranational agencies, and/or taxable and tax-exempt municipal bonds.

Financials Asset Management

News

Positive

Neutral

Negative

Sentiment 3-Months

Positive 100%

Neutral 0%

Negative 0%

NPFD: Discount Remains Unappealing And In The Wrong Environment

Nuveen Variable Rate Preferred & Income Fund remains a 'Hold' as rate sensitivity and a modest discount limit appeal. Despite its name, NPFD is mostly fixed-to-fixed rate preferreds, resulting in a leveraged-adjusted effective duration of 5.53 years leading to meaningful interest rate risk. Distribution coverage is pressured, with net investment income coverage lacking and likely to fall even shorter going forward.

NPFD: Discount Remains Unappealing And In The Wrong Environment

NPFD: Rising Rates May Increase Risk Profile

Nuveen Variable Rate Preferred & Income Fund remains a hold as dividend coverage and NAV stability face headwinds from potential rate hikes. NPFD's 10% yield is unsustainable; a 30% dividend cut would better support NAV and long-term performance. The fund's shrinking discount to NAV and high leverage amplify downside risk in a deteriorating debt market.

These ‘Preferred' Monthly Dividends Are On The Discount Rack

Preferred stocks are a little-known dividend secret. Worth knowing, by the way—they can yield up to 9.9%!

These ‘Preferred' Monthly Dividends Are On The Discount Rack

NPFD: Strong Results But Discount Narrows, Making It A 'Hold' (Downgrade)

Nuveen Variable Rate Preferred & Income Fund has delivered strong total returns since our last update. This was partially driven by NPFD's discount having narrowed from over 8%, making the current valuation less compelling and justifying a "Hold" rating. The fund's 10.09% distribution yield relies on capital gains, with net investment income coverage at only around 70%, even after the distribution trim.

NPFD: Strong Results But Discount Narrows, Making It A 'Hold' (Downgrade)

7 High Yield Monthly Payers To Own

Rose's Income Garden (RIG) portfolio emphasizes high-yield monthly payers across BDCs, ETFs, and CEFs, supporting steady income generation. Capital Southwest is internally managed, yields 11.68%, trades at a premium, and is a hold with potential for adding on dips. PennantPark Floating Rate yields 15.22%, trades at a discount, but faces price pressure; considered a speculative hold due to dividend risk.

7 High Yield Monthly Payers To Own

NPFD: More Attractive Valuation But Still Not A Buy

Nuveen Variable Rate Preferred & Income Fund is maintained at a hold rating due to limited operating history and inconsistent earnings coverage. NPFD offers a 9.8% dividend yield, improved net investment income, and trades at a 6.07% discount to NAV, making valuation more attractive. The fund's portfolio is heavily weighted toward investment-grade financials, providing credit quality but exposing returns to interest rate movements.

NPFD: More Attractive Valuation But Still Not A Buy

Rose's Income Garden Portfolio: 8 High-Yield Preferred Investments

Rose's Income Garden portfolio allocates 25% to finance, with a focus on high-yield preferred shares and closed-end funds. DFP and NPFD are highlighted as attractive CEFs, both trading at discounts to NAV and offering rising or stable monthly distributions above 6%. Six preferred shares, including AGNCN, DLNG.PR.A, NLY.PR.F, RITM.PR.D/E, and SEAL.PR.B, are recommended for their high yields and careful attention to call dates.

Rose's Income Garden Portfolio: 8 High-Yield Preferred Investments

NPFD: Interest Rate Cuts To Weigh On Distribution Sustainability

Nuveen Variable Rate Preferred & Income Fund offers a high 10.12% yield, outperforming peer indices and most comparable funds over the past three years. NPFD's distribution may be at risk, as variable-rate securities deliver falling income as short-term rates decrease. Shares currently trade at a modest 2.02% discount to NAV, but this is less attractive than the fund's historical average and some peers.

NPFD: Interest Rate Cuts To Weigh On Distribution Sustainability

11 Monthly Mostly High Yield Payers

Rose's Income Garden (RIG) portfolio features 81 investments, with 11 monthly payers across BDCs, ETFs, and CEFs focused on income generation. CSWC and PFLT are highlighted BDCs, offering high yields; CSWC is a strong buy on dips, while PFLT is a speculative buy, despite recent pressure. RIG includes three crypto-related ETFs (BITO, ETHU, SSK), providing exposure to digital assets with variable payouts, and two bond-focused ETFs (JBBB, SHYG) as cash alternatives.

11 Monthly Mostly High Yield Payers

NPFD: Future Interest Rate Cuts Can Be A Growth Catalyst

NPFD offers a high 10.5% yield and monthly payouts, making it attractive for income investors in a high interest rate environment. The fund's variable rate strategy and focus on investment grade financials provide resilience, but concentration and leverage increase risk. NPFD trades at a 4.2% discount to NAV, but its short history and inconsistent income generation raise concerns about dividend sustainability.

NPFD: Future Interest Rate Cuts Can Be A Growth Catalyst

See News Rankings

Price charts implemented using Lightweight Charts™