Q: Is this pref. still paying a dividend? If not, is it cum. and they have to pay in the future. Is it worth holding? ...Cec
Q: A subscriber named Peter asked for your opinion on GMP.PR.B preferred stock on March 17, but you didn't really answer his question. Instead, you commented on the common stock. Please don't do this again as I am NOT interested in the common stock. I am interested in the preferred stock, which is now down $3 from when Peter asked his question. I know this is a lower-rated pref, but surely the current discount is overdone?
Clearly, in the current virus-riddled economic environment, GMP will have to cut the dividend on its common stock. However, they cut the common dividend to zero a few years ago, but kept paying the preferred dividend. What is your opinion on the coverage for the preferred dividend? Would you recommend that preferred stockholders sit tight, buy more, or sell?
The rate resets on March 31, 2021 at 2.89% above 5 year Canada bonds. Even if the yield on 5 year government bonds goes to zero they'll pay a 2.89% x $25 face value = $0.7225 annual dividend. This seems attractive to me, or am I not properly understanding the yield calculation?
Clearly, in the current virus-riddled economic environment, GMP will have to cut the dividend on its common stock. However, they cut the common dividend to zero a few years ago, but kept paying the preferred dividend. What is your opinion on the coverage for the preferred dividend? Would you recommend that preferred stockholders sit tight, buy more, or sell?
The rate resets on March 31, 2021 at 2.89% above 5 year Canada bonds. Even if the yield on 5 year government bonds goes to zero they'll pay a 2.89% x $25 face value = $0.7225 annual dividend. This seems attractive to me, or am I not properly understanding the yield calculation?
Q: P/P $15, 1.5% position. Dropped sharply last 2 trading days($11.75 to current $9.05).Any reasons? Current yield 9.98% mainly due to drop in stock price.Reportedly rate is based on 5yr GOC plus 2.89% & resets on Mar 31/21.I think the 5yr GOC is currently 0.62% which indicates a much lower rate then.Please may I have your opinion.If it is advisable to sell,please give 2 to 3 replacemrents dividend stocks( not preferred) Txs for u usual great services & advices