Q: Hello,
Is it possible to know a bit about what might happen to this preferred share in the current context and in the coming years? Is it a good choice among perpetuals? Would any other quality perpetuals come to mind for income and some capital gains?
Thanks.
Is it possible to know a bit about what might happen to this preferred share in the current context and in the coming years? Is it a good choice among perpetuals? Would any other quality perpetuals come to mind for income and some capital gains?
Thanks.
5i Research Answer:
Typically for preferred shares, we 'prefer' to focus on an ETF such as CPD opposed to trying to pick and choose across individual offerings. BN.PR.N is a fixed rate perpetual with a current yield of 5.71%. With rates coming down to a more normalized level, we wouldn't expect a whole lot from these preferreds outside of the income stream, which is fine as it is a competitive yield. We wouldn't be concerned with this preferred though.