Cohen & Steers Select Preferred & Income Fund Announces $0.126 Dividend on October 14: Assessing Market Impact and Recovery Trends

Introduction

The Cohen & Steers Select Preferred & Income Fund (PSF) continues to demonstrate its commitment to income-focused investors through a consistent and well-structured dividend policy. With a declared cash dividend of $0.126 per share on its October 14 ex-dividend date, the fund aligns with its reputation as a reliable source of regular income. PSF operates in a market environment where preferred securities and high-yield instruments remain attractive for investors seeking stable returns, particularly in the current low-growth macroeconomic climate. This announcement reflects confidence in the fund’s operational and financial stability, as well as its ability to deliver consistent returns to shareholders.

Dividend Overview and Context

Understanding key dividend metrics is essential for investors evaluating PSF's dividend announcement. The ex-dividend date marks the point at which new buyers of the stock will no longer be entitled to the declared dividend. On this date, the share price typically adjusts downward by roughly the dividend amount. For PSF, the $0.126 per share cash dividend is a clear indicator of the fund’s robust performance and its ability to sustain regular payouts to shareholders.

With the ex-dividend date set for October 14, 2025, investors should anticipate a potential short-term price drop. However, historical data and recent financial performance suggest that PSF has the capacity to maintain its valuation and recover swiftly post-ex-dividend.

Backtest Analysis

The backtest analysis of PSF provides valuable insights into its historical performance around dividend dates. Over 17 dividend events, the fund has shown an average recovery period of 3.5 days from ex-dividend price drops. Moreover, there is an 82% probability of full recovery within 15 days. These results reflect the market’s strong absorption of the dividend impact and suggest a high level of confidence in the fund’s stability and investor sentiment.

The backtest was conducted using historical dividend data, assuming reinvestment of dividends and consistent trading strategies aligned with income-focused investment objectives. The analysis highlights PSF's reliability in delivering returns while maintaining strong performance relative to benchmarks.

Driver Analysis and Implications

PSF’s latest financial report reveals a strong operational foundation that supports its dividend decision. The fund reported a total revenue of $12,486,286 and an operating income of $10,874,575, indicating effective cost management and revenue generation. Notably, interest expense remains a key factor, at $3,261,192, which is partially offset by high operating income. The fund’s net income attributable to common shareholders is $9,438,479, resulting in a total basic earnings per common share of $0.7847.

This robust earnings base supports a payout ratio that remains sustainable, particularly given the fund’s preference for cash dividends. The consistent earnings and strong income generation reflect broader macroeconomic trends, including the continued demand for high-yield and fixed-income securities in a low-interest-rate environment.

Investment Strategies and Recommendations

For investors, the ex-dividend date presents both challenges and opportunities. Short-term strategies may involve timing entry or exit around the dividend drop, leveraging the predictable 3.5-day average recovery period. Investors should consider entering the stock just before the ex-dividend date or waiting for the bounce to re-enter, depending on their risk tolerance and return objectives.

Long-term investors may focus on the stability and regularity of PSF’s dividend payments, which are supported by the fund’s strong operational performance. Reinvesting dividends can enhance compounding returns and contribute to long-term growth. Investors should also monitor the fund’s earnings and expense trends to gauge future sustainability of the payout.

Conclusion & Outlook

Cohen & Steers Select Preferred & Income Fund continues to reinforce its position as a dependable income provider with its October 14, 2025 ex-dividend date. The fund’s strong financials, supported by solid earnings and effective cost management, underpin its dividend policy and its ability to deliver consistent returns. While the ex-dividend date may temporarily affect share price, the historical recovery pattern provides confidence for investors.

Looking ahead, investors should continue to monitor PSF’s upcoming earnings report for further insights into its financial health and future dividend trajectory.