LDP: Performance Is Interesting, But There Could Still Be Risks

Summary

• Cohen & Steers Limited Duration Preferred and Income Fund, Inc offers a 7.85% yield, which is lower than many of its peers.
• Preferred stocks have been gaining year-to-date despite falling bond prices and yields. This is highly unusual and could pose a risk for investors.
• The LDP closed-end fund's shares have outperformed its portfolio, but investors should consider the fund's valuation and potential risks before investing.
• The fund has failed to cover its distribution for two straight years, but it is probably okay unless the Federal Reserve surprises the market.
• The fund's valuation is not as attractive as it used to be, but it is still trading at a discount.
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RyanJLane

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.