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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Seems like there is some indiscriminate selling of rate reset prefs
last few days. Not sure this makes sense.
What are your three top rate reset ideas at the moment, that are NOT in the energy/pipeline sector
Thanks

Read Answer Asked by john on May 10, 2022

Q: Do you have any rate reset prefs that you think are worthwhile here? Thanks

Read Answer Asked by Martin on May 09, 2022

Q: Hi Peter,
Do you see anything "funny" about this redeemable reset preferred?
Current price is $21.98. Resets on 2022-09-30. Resets at 5YR + 2.92%. Currently the reset is then 2.83% + 2.92% = 5.75%. If PPL didn't redeem then you'd get a dividend rate of 6.55% based on the @21.98 price. If they do redeem then you get a $3.02 gain for 5 months.
Do I have my facts correct or am I missing a detail or two?

Read Answer Asked by Dennis on May 03, 2022

Q: In regards to CPD or just pref's in general. They have sold off a lot over the past month. Fair to say they have priced rate increases in and are now forecasting a slowdown and rates going lower? Would a partial switch to a TLT-US make some sense here if that is the thesis?

Read Answer Asked by Michael on May 02, 2022

Q: In this article, the author favours the BEP Preferreds instead of the common shares. Would you agree?.....

https://seekingalpha.com/article/4503184-brookfield-renewable-sell-common-buy-preferred-shares?mailingid=27474894&messageid=dividend_ideas&serial=27474894.25362&utm_campaign=Dividend%2BIdeas%2BLaunch%2B2022-04-24&utm_content=dividend_ideas_control&utm_medium=email&utm_source=seeking_alpha&utm_term=Dividend%2B%26%2BIncome%2BSmart%2BList

Read Answer Asked by James on April 25, 2022

Q: An information circular I am reading says that shareholders will be asked to approve the creation of two new classes of shares, both Preferreds and that these shares will not be listed on the TSX (but will be subject to approval of the TSX).

How common is this, and how do they trade (how is value determined)?

Read Answer Asked by Peter on April 25, 2022

Q: I think I misunderstood your previous answers on ZPR to mean it was the better preferred ETF to be in considering it holds rate resets, which should go up as interest rates rise. However, your last answer indicated it holds significant long exposure preferreds, which would cause it to fall more heavily under the current environment?

To be clear, what is your best idea for a preferred ETF right now?

Read Answer Asked by Curtis on April 19, 2022

Q: As an owner of these shares I am trying to ascertain the next call date for this security..is it 2026 or can it be called/redeemed earlier , and if so , when and at what price...Is there a resource available where this info is readily available to investors...thanking you in advance for your reply...Cheers

Read Answer Asked by Cam on April 08, 2022

Q: Hi
I owned BIP.PR.D for a couple of years and liked the steady dividends. I am looking at a) another Brookfield preferred that is similar or
b) an ETF that has mostly rate reset bons with a decent dividend or
c) another preferred share from a stable company, like fortis, bce, telus, enb, trp, etc
I would like something that provides 5%, has at least 2 years shelf life. Is it possible to provide maybe 5 choices, ranked that meet the above criterion?
As always great, Len

Read Answer Asked by Leonard on April 05, 2022

Q: I have owned a few perpetual preferreds for quite a few years. Now that interest rates are going up, some of them (particularly the ones with Canadian Utilities) have been declining. I should have sold them earlier this year but did not. What do you think perpetual preferreds will do in the coming year?

Read Answer Asked by Maria on March 30, 2022

Q: Hi,
TD has just issued an offer for convertible debentures on AFN, and I'd be interested in your opinion of it. The shares themselves have improved lately and seem to be attracting some interest. Whether that's due to the overall situation within the Agri area or something else, I wouldn't presume to know. The conversion rate seems generous, but then again - I don't have a lot of experience in rating convertible debentures. Any thoughts or suggestions are most welcome - whether good or bad, happy to listen!
Thanks,
Dawn

Read Answer Asked by Dawn on March 30, 2022

Q: Good morning,

As some of my rate reset preferreds are being recalled, I have been looking for replacements with more term. One that looks attractive is MFC.PR.Q. It pays a dividend of 4.7% until June 2023. The price has dropped from $25 to under $24 in the last 5 days increasing the yield to almost 5%. I have noticed that preferreds have been volatile lately. Is there anything wrong with this one?

Read Answer Asked by Ken on March 10, 2022

Q: I have been seeing a gradual price loss with some of the example preferred stocks I hold shown above.
With the continuing disaster going on in Ukraine and its inflationary impact, should I expect this to further reduce valuations for these types of investments as interest rates rise?

Read Answer Asked by Ted on March 10, 2022