DFP, FFC and FLC Announce New Regular Monthly Dividend Rate
July 20 2017 - 5:37PM
Business Wire
The Boards of Directors of Flaherty & Crumrine Dynamic
Preferred and Income Fund Incorporated (NYSE: DFP), Flaherty
& Crumrine Preferred Securities Income Fund Incorporated
(NYSE: FFC) and Flaherty & Crumrine Total Return
Fund Incorporated (NYSE: FLC) today announced new regular
monthly dividends beginning in August 2017.
The regular monthly dividend rate for DFP will be $0.155 per
share, which equates to an annual dividend of $1.86 per share. This
new monthly dividend represents a decrease of approximately 3.1%
from the prior monthly dividend.
The regular monthly dividend rate for FFC will be $0.119 per
share, which equates to an annual dividend of $1.428 per share.
This new monthly dividend represents a decrease of approximately
7.0% from the prior monthly dividend.
The regular monthly dividend rate for FLC will be $0.126 per
share, which equates to an annual dividend of $1.512 per share.
This new monthly dividend represents a decrease of approximately
5.3% from the prior monthly dividend.
R. Eric Chadwick, Chairman of the Board of each Fund, said “The
combination of increases in short-term interest rates and lower
portfolio income has led us to reduce dividend rates. Each Fund’s
common stock dividend continues to be enhanced by leverage, but
leverage expense has risen steadily with Fed rate hikes to a rate
of 2.2% today. At the same time, preferred-security yields have
moved significantly lower as global interest rates have remained
low and credit spreads have narrowed. Total returns on net asset
values have been excellent in recent years, but a consequence of
strong price performance is lower reinvestment yields for preferred
securities. Accordingly, we have reduced dividends to better
reflect the net income available for distribution to common stock
shareholders.”
The August monthly dividend will be paid on August 31, 2017 to
holders of record of each fund’s common stock on August 24, 2017.
The expected ex-dividend date is August 22, 2017. The tax breakdown
of all 2017 distributions will be available early next year, but at
this point the funds anticipate that all dividends paid in 2017
will consist of income earned by the fund and not contain capital
gains or returns of capital.
Past performance is not indicative of future performance. To the
extent any portion of the distribution is estimated to be sourced
from something other than income, such as return of capital, the
source would be disclosed on a Section 19(a)-1 letter located under
the “News & Literature” section of the funds’ website,
www.preferredincome.com. A distribution rate that is largely
comprised of sources other than income may not be reflective of a
fund’s performance.
Organized in 2003, FFC invests primarily in preferred securities
with an investment objective of high current income consistent with
preservation of capital. Also organized in 2003, FLC invests
primarily in preferred and other income-producing securities with a
primary investment objective of high current income and a secondary
objective of capital appreciation. Organized in 2013, DFP invests
primarily in preferred and other income-producing securities with
an investment objective of total return, with an emphasis on high
current income. FFC, FLC and DFP are managed by Flaherty &
Crumrine Incorporated, an independent investment adviser which was
founded in 1983 to specialize in the management of portfolios of
preferred and related securities. Flaherty & Crumrine also
manages two other U.S. closed-end funds: Flaherty & Crumrine
Preferred Income Fund (NYSE: PFD); and Flaherty & Crumrine
Preferred Income Opportunity Fund (NYSE: PFO).
Destra Capital Investments LLC (“Destra”), the funds’ provider
of investor support services, is an independent fund distribution
and servicing firm and registered broker dealer. As part of the
investor support services it provides, Destra serves fund
shareholders and the broader financial community. Destra is
headquartered in Chicago, IL.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170720006381/en/
PRESS AND ANALYST INQUIRIES:Flaherty & Crumrine
IncorporatedChad Conwell, 626-795-7300Pasadena,
CaliforniaorSHAREHOLDER INQUIRIES:Destra Capital Investments LLCRob
Watson, 877-855-3434Chicago, IllinoisWebsite:
www.preferredincome.com
Flaherty and Crumrine To... (NYSE:FLC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Flaherty and Crumrine To... (NYSE:FLC)
Historical Stock Chart
From Sep 2023 to Sep 2024