It appears that the Fed's statement re holding interest rates low has put a damper on the RNP. if it drops below9 it might be a buy.
IMO, I believe it is do to a shift from grow stocks to dividend paying stocks. Where can you get a 6.6% return on you money in todays market? Once the oil market recovers it will be a new ball game. The reports I read show that oil rigs are being shut down.
I don't see any news that gives support to the rapid rise in the stock price. Love it, but would like to understand the reason. Any inforrmation would be greatly appreciated.
After Halliburton deal, who's next?
Jonathan Alcorn | Reuters.
"M & A is alive and well and it appears that the next hot sector for consolidation is energy as oil prices continue to fall".
I keep checking on this stock as I have owned it for eight years and Yahoo continues to misquote the Dividend Yield as $0.70. The dividend is $0.33 quarterly which turns in a nice 7.38% return on current value. For any new comers to this forum click on the History tab and check the dividend history. RNP just raised the dividend by $0.03 per quarter. So, this continues to be one of those stocks you buy and just sit on.
Thanks for the reply, I don't necessarily disagree but maybe a little more analysis is in order?
REITs a good counter-trend holding or are they in for a multi-year bear market as i rates head up? So far, so bad with the i rate correlation.
NAV at September 30, 2013 was 18.63. Price as of November 6, 2013 (when update was supplied from Cohen and Steers) is $16.28.
Discount is a substantial 12.6%. Primarily on this basis I continue to hold my RNP.
Negatives are the 1.63% annual expense ratio and the impending rise in interest rates which will likely pressure the securities making on the holdings of RNP. It should be noted that despite the name "preferred" there are not very many assets actually in preferred shares. Mainly this is just a REIT fund with a smattering of preferreds and bonds.
Iappreciate your analysis. OTOH, I believe that The REIT sector will be showing increased dividends over the next 3 years. I expect Comercial and appartment REITs will increase dividendsin the next 3 quarters and that will result in increasing dividend income which will be paid to us. Check the sector investments in this link http://www.cohenandsteers.com/assets/content/resources/literature/CFS34-Q212_REIT_Preferred_071812.pdf. Note that holdings in Preferred stock have deminished and that there is a substantial increase in banking sector. Just my Opinion.
Highly doubtful since about half of RNP's holdings are in reit preferreds (which are stable and secure and pay out nice dividends, these dividends cannot go up and the price of good reit preferreds has about maxed out above their $25 call price). Reit common companies have not significantly, if at all,increased their dividends. Thus, I can't see how RNP could increase dividends without making most of it return of capital, which is the big cloud that Cohen & Steers' closed end funds fell under, particularly when they cut their dividends to more realistic levels. Also, RNP is selling at about the smallest discount to assets of any Cohen & Steers closed end fund. In short, I cannot see a catalyst or justification for increasing RNP's dividends. As a shareholder I'd certainly like bigger dividend checks, but strongly doubt any for the foreseeable future.