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Alphabet Inc. (GOOG)
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Constellation Software Inc. (CSU)
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Alimentation Couche-Tard Inc. (ATD)
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Brookfield Corporation Class A Limited Voting Shares (BN)
And I'm wondering whether I should hold on to it. It has a dividend yield of 6.31%, but I'm interested in knowing where you see the share price going. Or perhaps you can recommend something with better prospects at this point in the cycle.
John.
Preferreds have been strange traders over the past few years. The current weakness might be a relative attractiveness issue, with savings accounts paying in the 4% range. Investors likely need a higher yield and in turn lower pref prices to justify owning the asset class. While we would not be particularly concerned with preferreds in general, they might be in a bit of a tough spot in the short to medium term. But if interest rates peak they should at least stabilize. If patience is running out, we would be okay switching it out for equities like BN, CSU, ATD, and GOOG. That being said, BN as a credit risk we think is solid, and we would have no issues holding this preferred for income. A switch into common shares would involve more risk and volatility, so needs to match one's goals.
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