Eagle Point Income: Navigating Uncertainty with an 8% Yield

Eagle Point Income Co Inc (NYSE:EIC) offers a high-yielding financial instrument in uncertain times. The company's preferred stock provides a valuable investment opportunity for those seeking a stable source of income. With a strong track record and a stable financial position, Eagle Point Income is a viable option for investors looking to diversify their portfolios and generate consistent returns.

In an era of fluctuating interest rates and economic uncertainty, investors are increasingly seeking stable income sources. Eagle Point Income Co Inc (NYSE:EIC) presents a compelling opportunity with its preferred stock, particularly (NYSE:EICC). Founded in 2019, EIC is a closed-end investment fund registered under the Investment Company Act of 1940, with a primary objective of generating high current income and capital appreciation. The fund's portfolio, as of the end of August 2025, consists of 173 holdings, with significant investments in the Technology, Healthcare, and Hotels, Restaurants, and Leisure sectors Eagle Point Income: Discovering 8% Yield In Uncertain Times^[1].

EICC stands out as an attractive investment due to its high yield and stable distribution history. As of the end of August 2025, the fund has a distribution rate of 11.85%, with an annual distribution of $1.56 per share, paid monthly. The yield to maturity for EICC is 8.20%, and the credit spread relative to the 3-year Treasury yield is 4.63% above Eagle Point Income: Discovering 8% Yield In Uncertain Times^[1]. This makes EICC an appealing choice for investors seeking income in uncertain times.

The fund's asset coverage ratio is close to 320%, indicating a robust financial position. However, investors should be aware of potential risks. The reduction in the common share dividend from $0.20 to $0.13 in May 2025 reflects pressure on net investment income due to falling interest rates. Additionally, a decline in the value of CLO assets could lead to a decrease in the asset coverage ratio, potentially triggering the redemption of EICC at par Eagle Point Income: Discovering 8% Yield In Uncertain Times^[1].

EIC's preferred stocks, including EICC, are not rated by major credit agencies. However, the fund's performance and stability suggest a limited credit risk. The company's high expenses, with a total leverage of close to 31% and an expense ratio of 5.76%, may reduce net returns for investors Eagle Point Income: Discovering 8% Yield In Uncertain Times^[1].

In conclusion, Eagle Point Income Co Inc and its preferred stock, particularly EICC, offer an attractive opportunity for investors seeking stable income with high yields. While risks exist, such as potential dividend cuts and leverage, the fund's strong financial position and consistent performance make it a viable option for investors looking to diversify their portfolios and generate consistent returns.