PFD and PFO Declare Regular Monthly Dividend Rate and PFO Announces a Special Year-End Distribution
December 12 2016 - 8:02PM
Business Wire
The Boards of Directors of Flaherty & Crumrine Preferred
Income Fund Incorporated (NYSE: PFD) and Flaherty &
Crumrine Preferred Income Opportunity Fund Incorporated (NYSE:
PFO) today declared regular monthly dividends. In addition, PFO
declared a special year-end dividend to be paid in December.
The regular monthly dividend rate for PFD will be $0.088 per
share, which equates to an annual dividend of $1.056 per share.
This new monthly dividend represents a decrease of approximately
2.2% from the prior monthly dividend.
The regular monthly dividend rate for PFO will continue to be
$0.073 per share, which equates to an annual dividend of $0.876 per
share. In addition, shareholders will receive a special year-end
dividend from net investment income of $0.017 per share.
R. Eric Chadwick, Chairman of the Board of each Fund, said, “The
combination of increases in short-term interest rates and modestly
lower top-line income on the portfolio has led us to reduce the
dividend rate for PFD. While each Fund’s common stock dividend
continues to be enhanced by leverage, the market’s anticipation of
Federal Reserve rate increases has caused leverage expense to
increase from 1.1% on December 1, 2015 to 1.8% on December 1,
2016. Consequently, we have reduced PFD’s dividend to better
reflect income available for distribution to common stock
shareholders.”
The December monthly dividend and the special year-end dividend
will be paid on December 30, 2016 to holders of record of each
fund’s common stock on December 22, 2016. The expected ex-dividend
date is December 20, 2016. The tax breakdown of all 2016
distributions will be available early next year, but at this point
the funds anticipate that all dividends paid in 2016, including the
special year-end dividend for PFO, will be taxable as income and
not capital gains.
Past performance is not indicative of future performance. 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. A distribution rate that is largely
comprised of sources other than income may not be reflective of a
fund’s performance.
PFD was organized in 1991 and PFO was organized in 1992 as
closed-end funds which invest primarily in preferred securities.
Each Fund’s investment objective for holders of its common stock is
high current income consistent with preservation of capital. PFD
and PFO 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. Flaherty & Crumrine also manages three other U.S.
closed-end funds: Flaherty & Crumrine Preferred Securities
Income Fund (NYSE: FFC); Flaherty & Crumrine Total Return Fund
(NYSE: FLC); and Flaherty & Crumrine Dynamic Preferred and
Income Fund (NYSE: DFP).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161212006271/en/
Flaherty & Crumrine IncorporatedChad Conwell,
626-795-7300Pasadena, Californiawww.preferredincome.com
Flaherty & Crumrine Pref... (NYSE:PFD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Flaherty & Crumrine Pref... (NYSE:PFD)
Historical Stock Chart
From Jul 2023 to Jul 2024