Cohen & Steers Tax-Advantaged Preferred Securities & Income Fund (PTA) Declares $0.134 Dividend; Ex-Dividend on August 12, 2025

Introduction

Cohen & Steers Tax-Advantaged Preferred Securities & Income Fund (PTA) has maintained a consistent dividend policy, focusing on delivering regular income to investors through a diversified portfolio of preferred securities and other income-generating instruments. The fund's $0.134 per share dividend, announced ahead of the ex-dividend date on August 12, 2025, reflects its commitment to a yield-driven approach.

Currently, the market environment remains cautiously optimistic, with investors weighing interest rate expectations and the performance of yield-based assets. Against this backdrop, PTA's dividend announcement is expected to attract income-seeking investors looking for stability and short-term returns.

Dividend Overview and Context

Understanding key dividend metrics is crucial for evaluating the impact of a payout. The dividend per share (DPS) of $0.134 represents the cash return investors will receive if they are holders of record by the ex-dividend date. This date, August 12, 2025, is particularly important, as it marks the cutoff for dividend eligibility and often leads to a short-term adjustment in share price.

On ex-dividend dates, the stock price typically drops by approximately the amount of the dividend, as the company's value is adjusted to reflect the payout. However, given PTA’s historical performance, the impact is generally brief and predictable.

Backtest Analysis

The backtest conducted on PTA’s dividend history reveals strong historical support for the fund’s yield strategy. The analysis, covering multiple ex-dividend events, shows that PTA typically recovers its dividend value within an average of 1.08 days after the ex-dividend date. There is also an 80% probability of full recovery within 15 days, indicating a reliable and rapid price rebound.

This performance pattern suggests that the ex-dividend date carries minimal risk for investors who are not selling ahead of the event. The methodology included reinvestment assumptions and compared performance against broader market benchmarks, affirming PTA’s strong relative performance post-dividend.

Driver Analysis and Implications

Although PTA reported a net loss attributable to common shareholders of -$0.3771 per share in its latest financial report, the fund continues to distribute a consistent dividend. This raises questions about the sustainability of the payout and highlights the importance of examining the fund’s expense structure and investment strategy.

The fund incurred significant interest expenses and marketing, selling, and general administrative expenses, which could affect its ability to maintain the current yield in a higher-interest-rate environment. However, its strong operating income and income from continuing operations suggest a solid operational foundation to support the distribution.

Broadly, these factors indicate a fund with a yield-focused structure that may be sensitive to macroeconomic shifts—particularly changes in interest rates and credit spreads. Investors should monitor these trends when evaluating the long-term viability of the payout.

Investment Strategies and Recommendations

For short-term investors, the ex-dividend date presents a strategic opportunity for dividend capture strategies. Given the rapid price recovery, investors can potentially lock in the dividend while minimizing capital loss exposure.

• Buy ahead of the ex-dividend date.
• Hold through the date to collect the dividend.
• Sell shortly after to capture the rebound.

Long-term investors should focus on the fund’s underlying asset quality, expense structure, and macroeconomic risks. A diversified portfolio and disciplined expense management are key to sustaining the current yield over time.

Conclusion & Outlook

Cohen & Steers Tax-Advantaged Preferred Securities & Income Fund’s $0.134 per share dividend, set to be paid on or before August 12, 2025, aligns with its goal of generating consistent income for investors. The backtested pattern of quick price recovery supports the use of this fund in short-term dividend capture strategies.

Looking ahead, investors should monitor the fund’s next earnings and dividend announcement for further insight into its ability to maintain its yield. The broader market environment and interest rate outlook will also play a key role in shaping PTA’s future performance.