RAISES
REGULAR MONTHLY DIVIDEND RATE 4.0%
Business Editors
PASADENA, Calif.
– December 16, 2002 – Preferred Income Fund (NYSE:
PFD) today announced an extra year-end dividend distribution of 12.85 cents
per share of common stock.
In addition, the Fund increased the regular monthly dividend
on its common shares 4.0%. The new
monthly dividend rate is 9.15 cents per share and will be paid to shareholders
this month in addition to the extra year-end dividend.
Both regular and extra dividends consist entirely
of net investment income and will be treated as ordinary income for Federal
tax purposes. No capital gains are
included in these distributions.
The extra year-end dividend reflects the accumulation
of additional income for common shareholders attributable in large part to
low short-term interest rates and the corresponding savings to the Fund on
the cost of its leverage.
The increased regular monthly dividend rate comes
in response to the successful investment of proceeds of the additional shares
of Money Market Cumulative Preferred Stock issued in June of this year.
Both extra and regular dividends will be paid on December
31, 2002, to shareholders of record as of December 26, 2002. The expected ex-dividend date is December 20, 2002.
For additional information, contact the Fund’s investment
adviser, Flaherty & Crumrine Incorporated, at 626-795-7300.
Contact person: Peter C. Stimes, Treasurer
626/795-7300