Cohen & Steers Select Preferred & Income Fund Announces $0.126 Dividend – Market Impact and Recovery Outlook on 2025-12-09

Introduction

Cohen & Steers Select Preferred & Income Fund (PSF) has maintained a consistent dividend policy, targeting a stable and predictable income stream for its shareholders. The fund's latest quarterly dividend announcement of $0.126 per share, with an ex-dividend date of December 9, 2025, reflects its ongoing commitment to generating returns through preferred securities and other income-generating instruments. In a market environment characterized by rising interest rates and shifting investor risk appetite, PSF’s dividend resilience remains a key draw for income-focused investors.

Dividend Overview and Context

The $0.126 cash dividend per share is in line with PSF’s historical payout pattern, which typically maintains a stable quarterly amount. The ex-dividend date of December 9, 2025, is the date by which investors must own the stock to qualify for the dividend. On this date, the stock price is expected to adjust downward by approximately the dividend amount, assuming no major corporate or macroeconomic developments occur in the interim.

Investors should also consider the fund’s net investment income and its ability to sustain payouts. PSF’s latest financial report shows a total basic earnings per common share of $0.7847, indicating the fund has generated sufficient earnings to support its dividend. The fund also reported a net income of $9.438 million, affirming its capacity to maintain or even increase its dividend in the future if warranted.

Backtest Analysis

The backtest analysis of PSF’s historical ex-dividend performance reveals a pattern of strong and relatively quick price recovery. According to the findings, the fund typically recovers from ex-dividend price drops in an average of 3.27 days, with a 79% probability of full or partial normalization within 15 days. These results suggest that while the ex-dividend date may temporarily depress the stock price, the long-term trend supports a return to prior levels.

The backtest methodology focuses on historical price data and assumes no reinvestment or trading during the period. It measures the price impact on the ex-dividend date and tracks the subsequent performance over a 15-day window. The results highlight PSF’s relatively low volatility and its appeal to income-focused investors who are less sensitive to short-term price dips.

Driver Analysis and Implications

PSF’s ability to declare a consistent dividend stems from its strong operating performance. The fund reported total revenue of $12.486 million and a net income of $9.438 million in its latest financial report. These figures reflect the fund’s efficient cost structure, with total expenses at $1.612 million and a net income attributable to common shareholders of $9.438 million.

On a macroeconomic level, PSF’s performance is influenced by movements in interest rates and the yield environment. As a preferred securities fund, PSF benefits from a rising rate environment, where its yield advantage becomes more pronounced. The fund’s focus on high-quality preferred and income securities allows it to maintain a stable income stream even in periods of market volatility.

Investment Strategies and Recommendations

For investors considering PSF, the upcoming ex-dividend date presents both a risk and an opportunity. Short-term traders may find value in capitalizing on the expected price dip and subsequent rebound, as the backtest indicates a strong likelihood of price normalization within a short window. This approach would be particularly effective for those using a dividend-recovery trading strategy.

For long-term investors, the focus should remain on the fund’s ability to deliver consistent income and its overall financial health. The fund’s strong net income, combined with its stable dividend, positions it as a reliable component of an income-focused portfolio. Investors should also monitor PSF’s future earnings and any changes in its dividend policy.

Conclusion & Outlook

In summary, Cohen & Steers Select Preferred & Income Fund’s $0.126 quarterly dividend, with an ex-dividend date of December 9, 2025, represents a continuation of its strong income-producing capabilities. The fund’s financial performance supports its dividend sustainability, and the backtest data reinforces the historical pattern of quick price recovery.

Looking ahead, investors should keep a close eye on the fund’s upcoming earnings report and any potential adjustments to its dividend strategy. These insights will be critical for both short-term traders and long-term income investors seeking to optimize their exposure to PSF.