HPS: Good Income Fund, But Premium Valuation A Turn-Off

In various previous articles, such as this one, I discussed how the high inflation currently dominating the United States economy has caused numerous people to make efforts to increase their income. The John Hancock Preferred Income Fund III (NYSE:HPS) is one method through which this goal can be accomplished. This is a closed-end fund that specializes in providing a high level of current income to its shareholders, which is immediately evident in its 9.60% yield. This is obviously a much higher yield than most other things in the market, particularly the S&P 500 Index (SPY) and even the ICE Exchange-Listed Preferred & Hybrid Securities Index (PFF), which is bound to be attractive to any income-focused investor.

seekingalpha.com     Aug 25, 2023