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Algonquin Power & Utilities Corp. cumulative rate reset preferred shares Series D (AQN.PR.D)
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BCE Inc. Cumulative Redeemable First Preferred Shares Series R (BCE.PR.R)
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Royal Bank of Canada Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AZ (RY.PR.Z)
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TC Energy Corporation cumulative redeemable first preferred shares series 9 (TRP.PR.E)
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TC Energy Corporation cumulative redeemable minimum rate reset first pref shares Series 15 (TRP.PR.K)
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Emera Incorporated Cumulative Rate Reset First Preferred Shares Series C (EMA.PR.C)
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Enbridge Inc. cumulative redeemable preference shares series 7 (ENB.PR.J)
Q: I have provided a sampling of the Preferred Shares I have in my holdings where most of them have rate renewals out into 2023/24. With prospect of a recession and lower interest rates I have locked in returns for the short-term, would you be able to provide some insight into why their market valuation has dropped 25-30% in most cases? Are investors doubting Royal Bank, Bell, Algonquin Power, etc of being able to meet their debt obligations?
Q: I currently hold Royal preferred RY.PR.AZ series which Royal is offering to convert to floating rate non cumulative series BA., which will pay a quarterly dividend of 2.21% over T bill rate. If the Bank of Canada decides to lower its rates, will this not affect the dividend? Should I just stay with the AZ series for another 5 yrs? They are held in a RRIF