Flaherty & Crumrine Total Return Fund : FLC Announces May, June and July Dividends
April 24, 2020 at 05:18 pm
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PFD, PFO, FFC, FLC and DFP ANNOUNCE INCREASED MAY, JUNE and JULY DIVIDENDS PASADENA, CALIFORNIA - April 24, 2020
The Boards of Directors of Flaherty & Crumrine Preferred and Income Fund Incorporated (NYSE: PFD),
Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (NYSE: PFO), Flaherty &
Crumrine Preferred and Income Securities Fund Incorporated (NYSE: FFC), Flaherty & Crumrine Total
Return Fund Incorporated (NYSE: FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund
Incorporated (NYSE: DFP) today announced that they have declared per share dividends for May, June and July, 2020 as follows:
May
June
July
PFD
$0.078
$0.078
$0.078
PFO
$0.0635
$0.0635
$0.0635
FFC
$0.118
$0.118
$0.118
FLC
$0.121
$0.121
$0.121
DFP
$0.1505
$0.1505
$0.1505
Payment Date
May 29, 2020
June 30, 2020
July 31, 2020
Record Date
May 22, 2020
June 23, 2020
July 24, 2020
Ex-Dividend Date
May 21, 2020
June 22, 2020
July 23, 2020
Each of these new dividends represents an increase from April's dividend of +4.0% for PFD, +1.6% for PFO, +5.4% for FFC, +5.2% for FLC and +5.2% for DFP.
R. Eric Chadwick, Chairman of the Board of each fund, said "In response to COVID-19, and a sudden halt in economic activity brought on by measures to flatten its spread, prices of preferred and contingent capital securities in the first three weeks of March moved lower rapidly and relentlessly. COVID-19 will prove to be a terrible event in both human and economic terms. Although markets have calmed considerably from their drastic initial moves, no one knows the full magnitude of this crisis just yet. We still face another several weeks to several months of mandated safer-at-home orders and social-distancing, followed by a cautious, staggered approach to re-open our economy thereafter. And, there remains much uncertainty on timing. In the meantime, we continue to monitor credits and security valuations closely and work to position the funds to meet their objectives - and for the best chance of recovery in asset values as the pandemic recedes."
Mr. Chadwick continued, "In response to this crisis, the Federal Reserve has taken unprecedented steps to improve financial conditions, and the fed funds target rate is back to its financial-crisis low of 0-0.25%. This move lower in all short-term rates has caused leverage expense to decline from an average of about 3.1% in 2019 to about 1.5% most recently, while leverage balances have remained unchanged. Consequently, we have increased dividends modestly to better reflect projected annual net income available for distribution to common shareholders. We remain cautiously optimistic on the preferred and contingent capital securities markets, especially from the viewpoint of long-term income investors. However, we acknowledge that there is limited modern historical precedent for this pandemic and its global economic impact, making our 'crystal ball' unusually cloudy."
The tax breakdown of all 2020 distributions will be available early in 2021, but at this point the funds anticipate that the dividends detailed above will consist of net investment income and not capital gains or return of capital.
Website: www.preferredincome.com
Past performance is not indicative of future performance. An investor should consider the fund's investment objective, risks, charges and expenses carefully before investing.
To the extent any portion of the distribution is estimated to be sourced from something other than income, such as return of capital, the source would be disclosed on a Section 19(a)-1 letter located under the "SEC Filings and News" section of the funds' website, www.preferredincome.com. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a fund's investment performance during the remainder of its fiscal year and may be subject to change based on tax regulations. A distribution rate that is largely comprised of sources other than income may not be reflective of a fund's performance.
PFD, PFO and FFC invest primarily in preferred and other- income producing securities with an investment objective of high current income consistent with preservation of capital. FLC invests primarily in preferred and other income-producing securities with a primary investment objective of high current income and a secondary objective of capital appreciation. DFP invests primarily in preferred and other income-producing securities with an investment objective of total return, with an emphasis on high current income. PFD, PFO, FFC, FLC and DFP are managed by Flaherty & Crumrine Incorporated, an independent investment adviser which was founded in 1983 to specialize in the management of portfolios of preferred and related income-producing securities.
Contact:
Flaherty & Crumrine Incorporated
Chad Conwell, 626-795-7300
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Flaherty & Crumrine Total Return Fund Inc. published this content on 24 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2020 16:17:05 UTC
Flaherty & Crumrine Total Return Fund Incorporated (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is to provide its common shareholders with high current income. Its secondary investment objective is capital appreciation. The Fund invests at least 80% of its total assets in a diversified portfolio of preferred securities and other income-producing securities, consisting of various debt securities. It invests at least 25% of its total assets in the financial sector, which is comprised of the bank, thrifts and mortgage finance, diversified financial services, consumer finance, capital markets, asset management and custody, investment banking and brokerage, insurance, and real estate investment trust (REIT) industries. The Fund also focuses its investments in other sectors, such as energy, industrials, utilities, communications and pipelines. Flaherty & Crumrine Incorporated is the investment advisor of the Fund.