PASADENA, Calif.--(BUSINESS WIRE)--The Boards of Directors of Flaherty & Crumrine Preferred Income Fund Incorporated (NYSE: PFD), Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated (NYSE: PFO), Flaherty & Crumrine Preferred Securities Income Fund Incorporated (NYSE: FFC), Flaherty & Crumrine Total Return Fund Incorporated (NYSE: FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE: DFP) today announced that they have declared per share dividends for the next three months as follows:
|Payment Date||Feb. 28, 2018||
Mar. 29, 2018
|Apr. 30, 2018|
|Record Date||Feb. 21, 2018||
Mar. 22, 2018
|Apr. 23, 2018|
|Ex-Dividend Date||Feb. 20, 2018||
Mar. 21, 2018
|Apr. 20, 2018|
These new dividends represent a decrease from the last dividend per share of −4.9% for PFD, −4.3% for PFO, −4.2% for FFC, −5.6% for FLC and −4.5% for DFP.
R. Eric Chadwick, Chairman of the Board of each fund, said “The combination of increases in short-term interest rates and lower portfolio income has led us to reduce dividend rates. Each fund’s common stock dividend continues to be enhanced by leverage, but leverage expense has risen steadily with Fed rate hikes to a rate of about 2.5% today. At the same time, each fund is earning less income from its portfolio of securities as longer-term interest rates have remained low and credit spreads have narrowed. As a result, we have reduced dividends to better reflect the net income available for distribution to common stock shareholders.”
The tax breakdown of all 2018 distributions will be available early in 2019, but at this point the funds anticipate that the dividends detailed above will consist of net investment income and not capital gains or return of capital.
Past performance is not indicative of future performance. An investor should consider the fund’s investment objective, risks, charges and expenses carefully before investing.
To the extent any portion of the distribution is estimated to be sourced from something other than income, such as return of capital, the source would be disclosed on a Section 19(a)-1 letter located under the “SEC Filings and News” section of the funds’ website, www.preferredincome.com. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a fund’s investment performance during the remainder of its fiscal year and may be subject to change based on tax regulations. A distribution rate that is largely comprised of sources other than income may not be reflective of a fund’s performance.
PFD, PFO and FFC invest primarily in preferred securities with an investment objective of high current income consistent with preservation of capital. FLC invests primarily in preferred and other income-producing securities with a primary investment objective of high current income and a secondary objective of capital appreciation. DFP invests primarily in preferred and other income-producing securities with an investment objective of total return, with an emphasis on high current income. PFD, PFO, FFC, FLC and DFP are managed by Flaherty & Crumrine Incorporated, an independent investment adviser which was founded in 1983 to specialize in the management of portfolios of preferred and related securities.