Investment Q&A

Q: Have held NWC for a few years as one my major consumer staple holdings. Am now wanting to deploy more resources to this sector and want an opinion on this (WN.PR.A) perpetual preferred issue - similar type of sector and I would think limited volatility (March notwithstanding). With very low interest rates, is there a major concern of redemption? Thanks for your help and support, Bill

Q: okay - if i sold enb preferred, can i buy back the stock within 30 days and be within the superficial loss rules.

cheers

Q: Can you provide an update on je.db.d please?I own je.db.d. If all the proposals go through what will I own at the end of the of the day?

Q: Goodmorning
I curently own the following preffered shares end.pf.g and I have the option to either hold and or choose the new series 16 shares. Would you suggest continuing to hold series 15 or tender to the new series16
This
Marse

Q: Trying to make some 'secure' income of 5% or more. I've heard that Split Corp preferred shares may be a more stable route to go. Any advice in this regard? Could you also recommend a few Split Corp, or regular preferred shares, that meet that criteria of being 'super safe' but yield at least 5%?
Could you also please recommend any websites that cover the preferred space well.
Thank you very much.

PS: I asked a similar question a couple days ago but I don't think it was received.

Q: Looking for a few safe, Canadian, preferred shares - ideally yielding over 5%. Thank you.

Q: Does Brookfield Office offer an attractive investment for income and/or yield in the current environment?
Thank you

Q: This morning Phillip's question and your response convinced me that my portfolio should include minimum rate reset preferred shares. I would appreciate it if you would provide me with your recommendation for 3 or 4 low risk preferreds.

Q: I own JE.DB.D in my registered account for income. I believe there was an announcement recently concerning these debentures where they were to be converted to shares. Can you explain what JE is doing and how it effects my investment please?

Q: I cannot fathom why investors would buy rate reset preferreds when the resets will virtually all significantly lower their current dividend. The MINIMUM rate resets, to my mind, are the only preferreds to buy and there are many good companies paying between 5 3/4% and 7% and this rate will not drop. Additionally, if and when rates increase they could be paying an even higher dividend. No one seems to ask about minimum rate resets! Am I missing something?
Thanks
Phillip

Q: I bought these share for income in my registered account many years ago. Would you recommend that I continue to hold them?

Q: I own GSY.DB in my non-registered account. I have given instructions to convert my debenture to shares at the end of the month. I bought the debentures when they first came out at a price of $100.00. What will be my ACB for these new shares? What price do I use when I report a capital gain for tax purposes assuming I have a capital gain?

Q: Just reading about the new limited resource capital notes (LRCNs) that RBC is issuing to institutional investors at 4.5%. Since these pay interest, they are better for the banks than equity because they can deduct interest payments but not dividends. For investors, dividends are preferable from a tax point of view but I am wondering if banks are going to try and reduce traditional preferrred share offerings and issue more of these LRCNs. This is probably why preferreds have gone up recently. How do you see this playing out?

Q: what about getting exposure to Cineplex via the recent convertible bond issues by the company?

Q: Good morning,
Not a question, but a note to offer another possible reason as to the recent “lift” in preferred share prices, especially in the banks sponsored shares. A new capital note structure proposed by RBC (Limited Recourse Capital Notes – LCRN’s) has been accepted by the OSC as qualifying as Additional Tier 1 capital. In short, the view is that these notes, primarily issued to institutions, will limit future issuances in the traditional retail preferred share market, while also potentially funding the redemption of existing shares, resulting in better market tone.

Best regards,
Brad

Q: My kennel full of rate reset preferreds started barking surprisingly over the last couple of days, both in price and volume. Do you have any insight into this, and is it an opportunity to dump some of these hounds
in the dog days of summer (before tax loss selling gets underway in earnest in a couple of months)?

Q: WHY IS THIS UP TODAY AND IS IT A GOOD TIME TO BUY? THX JAMES

Q: Hi, preferred shares across the board are up huge today. Any reason?

Q: Hello
BMO.PR.C jumped today 8%. All other preferred shares jumped around 2-3%. CPD around 2.5%.

Do you know why BMO.PR.C jumped so much (8%). The volume of BMO.PR.C also jumped at 83,000 shares compare to the daily average of around 5,000. I own these shares and I would like to know if there is an explanation?
Thanks

Q: good morning - the bulk of my fixed income assets are in the form of preferred shares which i would very much like to move away from, although I will take a pounding in the values. My prefs pay in the 5% range and I'm wondering what your take is on replacing them say with canadian banks which are also paying roughly the same in dividends at their current prices. I am already overweight in banks and utilities but wonder what the true risks are for a long term holder. I have read several times that holding the banks over an extended period usually outperforms the canadian index. I know the difference between common and prefs, from a legal perspective, and understand that commons can suffer from downdrafts. However, all my prefs have performed so poorly and the future seems so bleak for them that i would like to get rid of them. What advice can you offer me, please. As always, thank you.