Flaherty & Crumrine Preferred and Income Securities Fund Inc. — Cyborg Score 7/10
Solid
Preferred securities closed-end funds
Strategic Profile
The portfolio remains focused on preferreds and contingent capital securities, heavily tilted to financials, insurance and utilities, with 75.8% in preferred/hybrid securities and 21.1% in contingent capital. At November 30, 2025, the market price discount to NAV was about 5.5%, the indicated yield on market price was 7.03%, and approximately 99.3% of 2025 distributions qualified as tax-advantaged qualified dividend income.
Cyborg Score Rationale
FFC demonstrates solid performance with a 9.4% NAV return and 13.0% market return in fiscal 2025, outperforming its preferred benchmark. The fund maintains strong asset coverage with 99.3% qualified dividend distributions and minimal NAV discount of 5.5%, supporting distribution sustainability and tax efficiency for income-focused investors.
Top Insights
FFC's fiscal 2025 NAV return of 9.4% and market return of 13.0% both exceeded its preferred benchmark's 4.2%, demonstrating effective portfolio management and security selection within the preferred securities market.
Net investment income of $55.3 million covered common distributions of $55.9 million in 2025, indicating sustainable distribution policy and disciplined leverage deployment at $502 million.
As of November 2025, approximately 99.3% of FFC distributions qualified as tax-advantaged qualified dividend income, positioning the fund as tax-efficient for income investors seeking preferential tax treatment.
Named Competitors
Preferred and Income Opportunity Fund — Preferred securities closed-end fund
Preferred and Income Fund — Preferred securities closed-end fund
Gabelli Dividend & Income Trust — Closed-end fund investing in preferred and income securities
Invesco Preferred Stock ETF — CEF-style preferred securities fund with monthly distributions
Wells Fargo Income Opportunities Fund — Closed-end fund focused on preferred and income securities
Recent Developments
(February 2026) FFC reported fiscal year 2025 results with 9.4% NAV return and 13.0% market return, net assets of $849.3 million, and 7.03% yield on market price
(November 2025) NAV per share increased from $17.31 to $17.63 with net assets growing to $849.3 million and market price trading at 5.5% discount to NAV
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