Fed's Impact on Preferred Stocks: The Federal Reserve's interest rate cuts are expected to benefit preferred stocks, which offer higher payouts compared to common shares, making them attractive investments during periods of falling rates.
Preferred Stocks vs. Common Shares: Preferred stocks are hybrid securities that combine features of stocks and bonds, providing dividends and ownership while often trading like bonds, which makes them appealing when interest rates decline.
Closed-End Funds (CEFs) for Diversification: Investing in preferred stocks can be complex, but closed-end funds (CEFs) offer a simpler way to gain exposure, often at discounts to their net asset values, and can enhance yields through leverage.
Highlighted Preferred Funds: Three preferred funds are discussed: Cohen & Steers Limited Duration Preferred and Income Fund (LDP) with a 7.2% yield, John Hancock Preferred Income Fund III (HPS) at 8.6%, and Nuveen Preferred & Income Opportunities Fund (JPC) yielding 9.8%, each with varying levels of risk and investment strategies.
Wall Street analysts forecast JPC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPC is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast JPC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPC is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 8.060
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Averages
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Current: 8.060
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About JPC
Nuveen Preferred & Income Opportunities Fund (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is high current income, and its secondary objective is total return. The Fund is focused on investing approximately 80% of its assets in preferred securities and other income producing securities, including hybrid securities such as contingent capital securities and up to 20% in other securities, primarily income-oriented securities, such as corporate and taxable municipal debt and common equity. The Fund invests in various sectors, including banks, insurance, capital markets, food products, diversified financial services, consumer finance, Electric Utilities, communications equipment, and industrial conglomerates. The Fund invests in various regions, such as the United States, the United Kingdom, Switzerland, France, Netherlands, Canada, Spain, Australia and other. The Fund's investment advisor is Nuveen Fund Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
