The Flaherty & Crumrine fund paid $0.153 per share with net investment income of $0.159, a 104% coverage ratio. The discount narrowed to 9.8%.
Alpha Score of 62 reflects moderate overall profile with moderate momentum, weak value, strong quality, moderate sentiment.
The Flaherty & Crumrine Preferred and Income Securities Fund (FFC) covered its March distribution fully with net investment income, the fund's monthly statement showed. The closed-end fund paid $0.153 per share. Net investment income came in at $0.159 per share, a coverage ratio of 104%.
The payout did not draw on capital gains or paid-in capital for the first time since November. FFC had relied on return of capital in recent months to maintain its distribution.
The fund holds preferred and debt securities from large U.S. banks and insurers. A flattening yield curve has helped lift preferred prices. The fund's discount to net asset value narrowed to 9.8% in late March from 12.5% at the start of the year.
FFC has kept its distribution flat for 21 consecutive months. A shortfall would have forced a cut or required more capital return, which erodes NAV. The full coverage removes that pressure.
The CME FedWatch tool now shows a first rate cut priced in by July. Lower rates would reduce refinancing risk for preferred issuers. If inflation or employment data surprises to the upside, the discount could widen again.
For now, the fund is generating enough income to pay its distribution without dipping into capital.
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