Nuveen Preferred & Income Opportunities Fund (JPC) Stock

JPC has delivered solid performance since my initial Hold recommendation was published. JPC's strong performance has been driven primarily be a significant narrowing of its discount to NAV. The fund's high distribution rate of 10.1% may become unsustainable, as the coverage ratio currently stands at just 68.5%.

Retirees favor diversified fixed-income portfolios for stable income and risk mitigation through diversification and elevated capital stack positions. JPC's portfolio is well-diversified across asset types and geographies, with a significant portion in investment-grade securities, reducing default risk. I take a deeper look at the fund and its current valuation to see if I think JPC's 10.1% yield is worth adding to a retirement portfolio.

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Do you invest for a purpose or simply react to market trends? I invest to ensure reliable cash flow across market cycles. Invest strategically to ensure every season of life feels secure and abundant.

Meticulous planning helps when you face unexpected problems. A well diversified income portfolio provides through good and bad markets. We discuss our top picks with +10% yields to cruise through what life throws at you.

Typically, retirement income-seeking portfolios are about accessing high and defensive yields that are also subject to decent growth. There could be justified instances when income growth becomes less important and instead access to abnormal yields plays an even more critical role. In this article, I present two high dividend picks, which could be included in retirement portfolios with an intent to boost the current income streams without assuming excessive risks.

The Nuveen Preferred & Income Opportunities Fund offers a high 9.77% distribution, leveraging up to 38%, but trades at only a 3% discount to NAV. JPC's portfolio includes investment-grade securities and CoCos, with significant exposure to financials, posing risks during financial crises. The distribution increase has improved trading, but may not be sustainable without selling securities, potentially decreasing value per share over time.

Nuveen Preferred & Income Opportunities Fund provides exposure to preferred stocks and various forms of income oriented securities. Fund offers monthly dividend of $0.0665 per share with current yield over 10%. However, the sustainability of the distribution is questionable. JPC's recent price increase has made the discount to NAV opportunity less attractive for entry.

Planning for the future requires flexibility to adapt to unexpected events. A diversified portfolio of dividend payers can support your retirement through market fluctuations. We discuss our top income picks with growing payouts.