DFP: Healthy NAV Growth And Outlook When Rates Decline
The Flaherty & Crumrine Dynamic Preferred and Income Fund (DFP) is currently offering a yield of 7.8% while trading at a 9.02% discount to its net asset value (NAV). The fund's portfolio is heavily invested in bank securities, which presents some sector concentration risk, but it maintains a majority investment-grade credit profile. With leverage at 37.5% of assets, the fund's income potential is amplified, although this also increases risk, particularly in a high-rate environment.
- ▪DFP offers a yield of 7.8% and trades at a 9.02% discount to NAV.
- ▪The fund's portfolio is 56.1% allocated to bank securities, introducing sector concentration risk.
- ▪Leverage stands at 37.5% of assets, amplifying both income and risk.
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