Flaherty & Crumrine Preferred Income Fund (NYSE:PFD) — For investors seeking a high-investment return during a period of generally low interest rates, one of the many preferred income funds, like PFD, could provide income and some degree of protection against a wildly unstable stock market.
Even though the fund has fallen recently from around $15.88, its concentration in the utility and banking industries, and its objective of high income consistent with preservation of capital, make it an attractive alternative to money-market funds.
PFD went ex-dividend on March 21, which accounts for some of the recent decline. Its dividend has been strong, but many preferreds are being called, and they could be replaced with issues with lower payouts. PFD currently pays a dividend of almost 8% on a monthly basis.
Technically PFD has been tracking its 200-day moving average for several years, and it is close to it now. Buy at the current price.