First Trust Intermediate Duration Preferred & Income Fund offers an attractive 8.80% yield, outperforming most domestic fixed-income indices and many of its peers, appealing to income-focused investors. The FPF closed-end fund's strategy includes investing 80% in preferred and income-producing securities, with significant exposure to the banking sector, which has increased recently. The fund's banking sector exposure probably is nothing worth worrying about, especially since it is purchasing preferred stocks.
WHEATON, Ill.--(BUSINESS WIRE)--First Trust Intermediate Duration Preferred & Income Fund (the "Fund") (NYSE: FPF) has declared the Fund's regularly scheduled monthly common share distribution in the amount of $0.1375 per share payable on December 16, 2024, to shareholders of record as of December 2, 2024. The ex-dividend date is expected to be December 2, 2024. The monthly distribution information for the Fund appears below. First Trust Intermediate Duration Preferred & Income Fund (FP.
First Trust Intermediate Duration Preferred & Income Fund has seen share price appreciation due to expectations of interest rate cuts. Fund has a yield higher than most peers, partially due to a distribution increase a few months ago. The fund's leverage ratio is reasonable compared to peers, covering distribution through capital gains and net asset value increase.
The First Trust Intermediate Duration Preferred & Income Fund provides investors with exposure to preferred securities and also focuses on an intermediate duration. FPF's valuation suggests it is trading around fair value based on longer-term average levels, but on a shorter-term basis valuation, it is looking a bit rich. FPF's intermediate duration could help keep it relatively less interest rate sensitive, but lower interest rates would still look to benefit the fund the most.
The First Trust Intermediate Duration Preferred & Income Fund offers a high yield of 9.57%, higher than many other preferred stock funds. The fund has outperformed major fixed-income indices and even the S&P 500 Index, which is impressive for a fixed-income fund. Investors should be cautious as the fund's recent gains may not be sustainable due to uncertainty around interest rate cuts and potential market correction.
The First Trust Intermediate Duration Preferred & Income Fund aims to reduce duration risk and provide income for risk-averse investors. The fund has underperformed fixed-income indices but offers a higher yield, making it an attractive option for income-focused investors. The fund's portfolio consists primarily of preferred stocks and bonds, with a focus on the financial services sector.