DFP: 7% Yield On Preferreds

Flaherty & Crumrine Dynamic Preferred & Income Fund offers high-yield preferred exposure, yielding 7.27% with a monthly distribution and 98.7% qualified dividend income in 2025. DFP maintains a 49.6% preferred stock allocation, 43.5% in corporate bonds, and is heavily weighted toward banking and insurance sectors. DFP trades at a 7.16% discount to NAV, deeper than its 5-year average, but only slightly below its 1-year average; the current valuation is not compellingly cheap.