RNP: A Resilient Real Estate Fund with Strong Dividend Support

Cohen & Steers REIT & Preferred Income Fund (RNP) is a closed-end fund that aims to provide attractive total returns through a blended approach of real estate equities and preferred securities. The fund operates by investing in a diversified portfolio of real estate investment trusts (REITs) and preferred securities, with a focus on generating stable income and long-term capital appreciation. RNP has a well-supported dividend and a resilient real estate portfolio, making it a suitable investment option for those seeking a steady income stream.

Cohen & Steers REIT & Preferred Income Fund (RNP) is a closed-end fund that aims to provide attractive total returns through a blended approach of real estate equities and preferred securities. The fund operates by investing in a diversified portfolio of real estate investment trusts (REITs) and preferred securities, with a focus on generating stable income and long-term capital appreciation. RNP has a well-supported dividend and a resilient real estate portfolio, making it a suitable investment option for those seeking a steady income stream.

As of May 6, 2025, the RNP stock price is $22.19, trading on the NYSE under the ticker symbol RNP [1]. The fund's primary objective is to provide high levels of current income, achieved through investment in preferred and other income securities [2]. This strategy has been particularly effective in recent market conditions, where the fund has shown resilience in the face of broader market volatility.

The Cohen & Steers REIT & Preferred Income Fund has a dividend yield of 7.85%, which is significantly higher than many domestic fixed-income indices, such as the ICE Exchange-Listed Preferred & Hybrid Securities Index (6.70%) and the Bloomberg U.S. Aggregate Bond Index (3.81%) [2]. This high yield makes RNP an attractive option for income-seeking investors, especially those who prioritize stability over high growth potential.

However, it is essential to note that RNP's yield is lower than some of its peers. For instance, the First Trust Intermediate Duration Preferred & Income Fund (FPF) has a yield of 9.35%, while the Flaherty & Crumrine Preferred Securities Income Fund (FFC) has a yield of 7.29% [2]. This discrepancy can be attributed to RNP's lower leverage ratio, which stands at 33.00% compared to 35.23% for FPF and 38.60% for FFC [2]. While this lower leverage reduces risk and volatility, it also means a lower yield.

The fund's performance has been notable in recent months. Despite a decline in the U.S. dollar, which has negatively impacted preferred stocks, RNP has managed to outperform the ICE Exchange-Listed Preferred and Hybrid Securities Index. The index has declined by 6.57%, while RNP's share price has decreased by only 2.82% [2]. This relative performance highlights the fund's ability to retain asset value and generate stable returns, even in challenging market conditions.

In conclusion, Cohen & Steers REIT & Preferred Income Fund (RNP) offers a compelling investment option for those seeking a steady income stream with a diversified portfolio of real estate and preferred securities. Its high dividend yield and resilient performance make it a solid choice for income-oriented investors, despite the lower yield compared to some peers.

References:
[1] https://www.investing.com/equities/cohen---steers-reit---preferredome
[2] https://seekingalpha.com/article/4782081-ldp-declining-dollar-creates-risk-for-preferred-stocks