Flaherty & Crumrine Preferred & Income Fund Announces $0.0628 Cash Dividend — Strong Post-Ex-Dividend Recovery Expected

Introduction: Stability in a High-Yield Dividend Strategy

Flaherty & Crumrine Preferred & Income Fund (PFD) continues to deliver consistent cash dividends to its investors, maintaining its role as a preferred option for income-focused portfolios. With a cash dividend of $0.0628 per share announced, the fund reaffirms its commitment to distributing earnings to shareholders. This announcement coincides with the ex-dividend date of September 23, 2025, a key date for investors to consider in their trading strategy.

The fund’s latest financial report, which includes a total revenue of $8.36 million and operating income of $7.34 million, reflects a strong operational backdrop. These figures support the fund's ongoing ability to sustain its dividend policy.

Dividend Overview and Context

Key metrics such as dividend per share (DPS) and ex-dividend date are central to understanding a company's dividend strategy and its impact on the stock price. A cash dividend of $0.0628 per share represents a modest but consistent payout for PFD investors.

The ex-dividend date on 2025-09-23 marks the cutoff for shareholders to receive the dividend. On this date, the share price is typically adjusted downward by approximately the dividend amount. For PFD, this adjustment is likely to be minimal given its historical price behavior.

Backtest Analysis: Rapid Dividend Recovery

The backtest analysis of PFD’s historical dividend behavior reveals a compelling pattern: the fund’s share price typically recovers the dividend value within just 1.69 days on average. There is a 94% probability that the price will rebound within 15 days after the ex-dividend date, based on 17 dividend events.

This data supports the idea that the price drop on the ex-dividend date for PFD is usually short-lived and does not significantly affect long-term performance.

Driver Analysis and Implications

The fund's strong operating income of $7.34 million and net income of $1.01 million signal a healthy cash flow position. These figures, in conjunction with relatively low interest expense and marketing/admin expenses, suggest the fund is managing costs effectively and has the capacity to sustain its dividend payouts.

The total basic earnings per common share of $0.0784 indicates that the dividend payout of $0.0628 is well within the fund’s earnings capacity, supporting a conservative and sustainable payout ratio.

These internal financial strengths are reinforced by broader market trends that favor high-yield, stable income instruments, especially in a rate-sensitive environment.

Investment Strategies and Recommendations

Given the backtest's indication of rapid price recovery and strong consistency, investors may consider the following strategies:

• Short-term traders could potentially benefit from the predictable price adjustment on the ex-dividend date by timing their entries and exits around the event.
• Long-term income investors should view PFD as a stable option for regular income, leveraging its consistent dividend history and strong earnings base.
• Investors may also consider reinvestment strategies to capitalize on compounding, especially in tax-advantaged accounts.

Conclusion & Outlook

Flaherty & Crumrine Preferred & Income Fund’s latest cash dividend of $0.0628, payable on the ex-dividend date of September 23, 2025, reflects a disciplined approach to shareholder returns. With a strong earnings base and a historically reliable pattern of price recovery, the fund remains a compelling option for income-focused investors.

Upcoming events to watch include the next earnings announcement and any potential changes in the broader market environment. Investors should remain attentive to these developments to optimize their investment approach.