Cohen & Steers Select Preferred & Income Fund

PSF

Market cap $249M

Cohen & Steers Select Preferred and Income Fund offers a 7.4% yield and trades at a deep discount to NAV, appealing to income investors. PSF's portfolio is heavily concentrated in the banking sector and below investment grade securities, presenting sector and credit risks. Dividend coverage remains inconsistent, with payouts declining over the past decade and reliance on net realized gains to support distributions.

PSF provides attractive income with a 7.6% yield and global diversification, making it appealing for long-term, income-focused investors. The fund currently trades at a 7.5% discount to NAV, offering a compelling entry point, especially if interest rates decline in the future. PSF's performance and dividend coverage have been inconsistent, raising concerns about the sustainability of its high payout.

The Cohen & Steers Select Preferred and Income Fund offers a 7.26% yield, outperforming some peers but lagging behind others in yield. The fund's portfolio is primarily preferred stocks, with a 33.78% leverage ratio, and it has improved its distribution coverage in 2024. Despite strong performance, the fund lacks protection against inflation, making it crucial for investors to diversify with assets that hedge against a declining U.S. dollar.

Taxable bond CEF space value shrinking as discounts tighten. Opportunities exist, especially following activists. Focus on top-down assessment, cheap sectors, and specific funds like Cohen & Steers Select Preferred and Income.

Cohen & Steers Select Preferred and Income Fund has a yield of 7.82%, in line with peers but lower than some major competitors. The PSF closed-end fund's relatively low yield could pose problems, as it might not be actually beating inflation. This is a very acute problem for taxable accounts. The fund's share price has declined as expected, but its distributions have helped offset losses, resulting in a 2.80% total return since January.

The Cohen & Steers Select Preferred and Income Fund offers a high level of income with a current yield of 7.81%. The PSF closed-end fund's share price has increased by 3.92% since the last article on it, outperforming the preferred stock index. There are concerns that the fund's recent gains may not be sustainable if the Federal Reserve fails to deliver expected interest rate cuts.