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RNP: This 6%-Yielding CEF Could Be A Good Fit For Your Portfolio


  • Every investor should have some exposure to real estate as a way to protect themselves against inflation, which could be a real problem in the near future.
  • RNP is a very solid fund that splits its investments between real estate and preferreds in order to generate income.
  • The fund is quite well-diversified throughout both portions of its portfolio, which is appealing.
  • RNP was able to maintain its distribution straight through the worst of 2020 and was even able to fully cover it with dividends and capital gains.
  • The fund is surprisingly trading at a slight discount so the price looks right.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »

Looking directly up at the skyline of the financial district in central London - stock image
Photo by Nikolay Pandev/E+ via Getty Images

Over the past few weeks, I have discussed how real estate and real estate investment trusts can protect your wealth against the ravages of inflation. Inflation is a problem that greatly affects retirees since

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This article was written by

Power Hedge profile picture

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (8)

waldipup profile picture
I don't mind bank Preferred's per se ,

But I do mind that most are non cumulative , and can choose to not pay any dividend for years at will and never make it up as cumulatives must .

And yeah , leverage should be addressed in the article .
Leverage works both ways. Look at where the stock has
gone from the low in 09 when everything was on sale.
Since that time leverage has worked for those who got in
and held.
Rudester profile picture
The 27% leverage, ignored by the author in this article, is a bit scary.
What happens to fixed income when inflation comes back.
@malaparte Inflation has been with us for quite some time. The government is the only entity denying it. Go get a fast food hamburger. Go to the store with your wife. Try to buy a house. You will see inflation. The stock and bond market is awash with capital and speculation driving it and prices higher.
@jasonjones The problem is with inflation, fixed income goes down in value. Just look at the history of bonds.
@malaparte @@jasonjones
My concern is for those who hold longer term
because of ROC and don't sell for that reason.
Concern is higher rates one day coming and we
don't know when. Higher rates=lower interest
rate sensitive stocks.
Great article and fund. It's not a product. The term product has been misused by insurance companies to make its contracts seem like a solid entity and investment as opposed to an agreement between a company and an individual. A product is a manufactured solid object with value inherent in labor/manufacture and materials. RNP is an investment fund of pooled monies buying investments with management using a variety of techniques to increase income. Please don't use insurance company sales jargon.
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