Cohen & Steers Select Preferred and Income Fund, Inc. (PSF)

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.

Same Property NOI Increase Rent PSF Increase Across the Entire Porfolio Same Property NOI Increase Rent PSF Increase Across the Entire Porfolio

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.

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.

FLC: Preferred Stocks Are Doing Well, But Don't Ignore The Risks

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.

Inflation rates in the U.S. and other G20 nations have been at their highest levels since the late 1970s, causing financial strain for many individuals. Investing in closed-end funds that specialize in generating income, such as the Cohen & Steers Select Preferred and Income Fund, can provide a solution for individuals seeking additional income. The Cohen & Steers Select Preferred and Income Fund focuses on providing high current income through investments in preferred stock and bonds, but its distribution history and ability to sustain distributions in the future should be carefully evaluated.

We review CEF market valuation and performance through the last week of June and highlight recent market action. CEFs had a great week, finishing June in strong form with higher-beta sectors in the lead. The 3-month/5-year yield curve is close to its most inverted level, which creates a strong headwind for net income of leveraged CEFs.

Today, I wanted to take a broader look at the preferred closed-end fund space. After struggling for most of the last year due to rapidly-rising interest rates, the latest banking failures sent preferred CEFs spiraling.

Investors are in desperate need of additional income today as they try to maintain their incomes in the face of high inflation. Cohen & Steers Select Preferred and Income Fund, Inc. invests in a portfolio of preferred stocks and bonds and then applies leverage in order to provide its shareholders with an incredibly high yield.

Cohen & Steers Select Preferred and Income Fund, Inc. invests in a portfolio of preferred stock and other income securities in order to provide its investors with a high level of current income. The securities in the portfolio have generally declined in price year-to-date due to the Federal Reserve's monetary tightening policy.

For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promise high distributions and reasonable total returns. Closed-end funds are generally characterized by higher volatility and deeper drawdowns than the broad market. For these reasons, they are not suited for everyone.

Today, we are taking a refreshed look at the preferred closed-end fund space. We see that the entire space has become more expensive, yet at the same time, distribution yields have dropped - this is mirroring the broader CEF spaces actions.

PSF: Great Income Fund With Improving Valuation

NEW YORK, Aug. 27, 2021 /PRNewswire/ -- This press release provides shareholders of Cohen & Steers Select Preferred and Income Fund, Inc. (NYSE: PSF) (the "Fund") with information regarding the sources of the distribution to be paid on August 31, 2021 and cumulative distributions paid fiscal year-to-date. In December 2016, the Fund implemented a managed distribution policy in accordance with exemptive relief issued by the Securities and Exchange Commission.

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