Cohen & Steers Ltd Duration Preferred & Income Fund Announces $0.131 Dividend, Payable on 2025-10-14

Introduction

Cohen & Steers Ltd Duration Preferred & Income Fund (LDP) has a long-standing reputation for offering consistent income to investors through its preferred securities and high-yield strategies. The fund has historically maintained a stable dividend policy, aligning with its goal of providing reliable cash flow. On 2025-10-14, LDP will go ex-dividend at $0.131 per share, a continuation of its established payout pattern. Recent market conditions have seen a mixed landscape for income-generating assets, with rising interest rates impacting the valuation of preferred securities. Investors will be watching closely as LDP’s ex-dividend price action unfolds amid this backdrop.

Dividend Overview and Context

The ex-dividend date marks the first day a stock trades without the right to the previously announced dividend. For LDP, this date is October 14, 2025, and the dividend of $0.131 per share is consistent with its historical pattern. Investors who purchase shares on or after this date will not receive the upcoming dividend.

From a pricing perspective, the ex-dividend date often results in a downward adjustment in the stock price by the amount of the dividend, although this is not always a one-to-one adjustment due to market dynamics and investor sentiment. The impact of the ex-dividend date is crucial for those using dividend capture strategies.

Backtest Analysis

The backtest of LDP's dividend performance over the past 17 events reveals a strong and consistent price recovery after the ex-dividend date. On average, the fund recovers its dividend amount in just 2.36 days, with an 82% probability of recouping the dividend value within 15 days. These findings underscore the effectiveness of dividend capture strategies for this vehicle.

Driver Analysis and Implications

Examining the latest financial report, LDP reported a net income of $27.32 million and total basic earnings per common share of $0.9396. The fund’s operating income of $27.26 million and net income attributable to common shareholders of $27.32 million indicate strong operational performance. The interest expense of $7.96 million reflects the cost of financing the fund's preferred securities strategy.

The fund’s ability to consistently pay a $0.131 dividend per share suggests a robust payout capacity relative to its earnings. The fund’s expense ratio is also well-managed, with total expenses of $3.76 million. These financial metrics support the fund’s current dividend policy and provide confidence in its sustainability.

From a macroeconomic perspective, LDP’s performance is influenced by interest rates and the credit markets. As rates continue to adjust, preferred securities and high-yield strategies may see renewed demand, which could support LDP’s performance and dividend capacity.

Investment Strategies and Recommendations

For investors, LDP presents both short-term and long-term opportunities:

• Short-Term Strategies: Investors seeking to employ dividend capture strategies may benefit from LDP’s consistent dividend and strong price recovery. The fund’s average recovery in less than three days makes it an attractive candidate for those timing dividend events.

• Long-Term Strategies: LDP’s strong earnings, low expenses, and consistent payout make it a solid option for income-focused investors looking for a stable and diversified high-yield exposure.

Investors should consider LDP within a diversified portfolio to balance risk and reward, especially in a rising-rate environment.

Conclusion & Outlook

Cohen & Steers Ltd Duration Preferred & Income Fund continues to demonstrate its reliability as a consistent dividend payer. With a $0.131 per share dividend going ex on October 14, 2025, and a strong track record of post-dividend price recovery, LDP remains a compelling option for income-seeking investors. Looking ahead, investors will be keen to see how LDP performs in its next earnings release, expected to offer further insight into the fund's positioning in the evolving market.