Market Overview

PFD, PFO, FFC, FLC and DFP Announce February, March and April Dividends

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The Boards of Directors of Flaherty & Crumrine Preferred Income Fund
Incorporated (NYSE: PFD), Flaherty & Crumrine Preferred
Income Opportunity Fund Incorporated (NYSE:PFO), Flaherty &
Crumrine Preferred Securities Income Fund Incorporated (NYSE: FFC),
Flaherty & Crumrine Total Return Fund Incorporated (NYSE:FLC)
and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE:
DFP
) today announced that they have declared per share dividends for
the next three months as follows:

           
February     March     April
PFD $0.078 $0.078 $0.078
PFO $0.066 $0.066 $0.066
FFC $0.114 $0.114 $0.114
FLC $0.119 $0.119 $0.119
DFP $0.148 $0.148 $0.148
 
Payment Date Feb. 28, 2018

Mar. 29, 2018

Apr. 30, 2018
Record Date Feb. 21, 2018

Mar. 22, 2018

Apr. 23, 2018
Ex-Dividend Date Feb. 20, 2018

Mar. 21, 2018

Apr. 20, 2018
 

These new dividends represent a decrease from the last dividend per
share of −4.9% for PFD, −4.3% for PFO, −4.2% for FFC, −5.6% for FLC and
−4.5% for DFP.

R. Eric Chadwick, Chairman of the Board of each fund, said "The
combination of increases in short-term interest rates and lower
portfolio income has led us to reduce dividend rates. Each fund's common
stock dividend continues to be enhanced by leverage, but leverage
expense has risen steadily with Fed rate hikes to a rate of about 2.5%
today. At the same time, each fund is earning less income from its
portfolio of securities as longer-term interest rates have remained low
and credit spreads have narrowed. As a result, we have reduced dividends
to better reflect the net income available for distribution to common
stock shareholders."

The tax breakdown of all 2018 distributions will be available early in
2019, but at this point the funds anticipate that the dividends detailed
above will consist of net investment income and not capital gains or
return of capital.

Website: www.preferredincome.com

Past performance is not indicative of future performance. An investor
should consider the fund's investment objective, risks, charges and
expenses carefully before investing.

To the extent any portion of the distribution is estimated to be
sourced from something other than income, such as return of capital, the
source would be disclosed on a Section 19(a)-1 letter located under the
"SEC Filings and News" section of the funds' website,
www.preferredincome.com.
The actual amounts and sources of the amounts for tax reporting purposes
will depend upon a fund's investment performance during the remainder of
its fiscal year and may be subject to change based on tax regulations. A
distribution rate that is largely comprised of sources other than income
may not be reflective of a fund's performance.

PFD, PFO and FFC invest primarily in preferred securities with an
investment objective of high current income consistent with preservation
of capital. FLC invests primarily in preferred and other
income-producing securities with a primary investment objective of high
current income and a secondary objective of capital appreciation.
DFP
invests primarily in preferred and other income-producing securities
with an investment objective of total return, with an emphasis on high
current income.
PFD, PFO, FFC, FLC and DFP are managed by
Flaherty & Crumrine Incorporated, an independent investment adviser
which was founded in 1983 to specialize in the management of portfolios
of preferred and related securities.

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