Eagle Point Income Term Preferred: Still Rate EICC A Buy

Retired Investor
Investing Group
(9min)

Summary

  • I recommend Eagle Point Income Company Inc.'s term preferred stocks (EICB and EICC) over iShares iBonds ETFs for higher current income and better value.
  • EIC term preferreds offer attractive yields and are protected by a 200% asset coverage rule, minimizing default risk.
  • iShares iBonds ETFs provide diversified high-yield bond exposure but face reinvestment risk and potential defaults, impacting yield-to-maturity.
  • Investment choice hinges on risk tolerance: term preferreds for higher income and ETFs for reduced default risk and no call risk.

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Introduction

This will update my prior article that compared the term preferred of Eagle Point Income Co Inc. (NYSE:EIC) with a twist. I’m only covering the two with the longest maturities but including

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This article was written by

Retired Investor
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Retired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts.

He is a contributing author to the investing group iREIT®+HOYA Capital

The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of IBHH, IBHI, EICA either through stock ownership, options, or other derivatives. 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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