Investment Q&A

Q: Down lots in this stock. Is it worth keeping?

Q: Greetings,

Hoping you can help me to understand the fundamental differences between these funds and why the US preferred ETFs have significantly outperformed CPD since March.

Thanks

Q: Which do you prefer and why?
Thanks for your service

Q: I hold these preferreds, which yield over 10%. I assume there are credit concerns based on doubts about the viability of companies holding office, commercial and retail properties. Your opinion?

Q: Hi,
After the announcement by GSY to start redeeming some of its debentures on June 29th, the stock seems to have been lagging the broader market. Hows does this news impact a stocks price and what effect does it have, if any?

Thanks

Q: There are a lot of different BAM preferred shares that one could choose from to invest. Some have dived yields as high as 8%? What is the difference in each of the issues? Why would one not just choose the one with the highest dividend yield? Can you please clarify? Is there a drawback of choosing one over the other? If you had to choose one which would you pick?

Regards,

Brendan

Q: Hello 5i Team
Is there a website where I can download the CUSIP and/or ISIN for Canadian Preferred Shares and/or other securities?
I am trying to analyse the holdings of CPD/RPF/ZPR and each one presents the holdings with different information (CPD has the CUSIP, RPF has neither, ZPR has the ISIN), none of them indicate the underlying TSE stock symbol and the security description is extremely truncated (mostly company name).
Some of the company websites have the CUSIP and/or ISIN, however the majority do not. Short of emailing the investor relations department do you suggest any other means?
How successful are you in receiving answers from investor relations representatives?
Thanks

Q: What is your opinion of buying into the recently announced offering of convertible debentures versus just buying the common shares? Thanks for the great service.

Q: As a follow up to my earlier question about Preferred shares as a form of income. I currently hold about 53% of my portfolio in savings account funds only giving me 1.5% dividend which is low, however as you mentioned the price will not drop so it is safe and also very liquid. I was thinking about taking 1/4 of that money (12% of my total portfolio) and putting it is some preferred share because the dividends are much higher. I do not plan to utilize this amount of funds for a while and it would give me a bit of extra return on my money. I currently have about 8% in common shares of banks, 8% in XLB, 12% in gold stocks, 12% in technology stocks, the rest in other various stocks not in those groups. I use the Savings Account mutual funds as cash for when I decide to buy stocks and I have been increasing my holdings slowly since the March lows. Would it be better just to buy the common dividend paying stock or is there an advantage to buying the preferred. I know the preferred share have a higher hierarchy if a company goes bankrupt but they are very much more illiquid.

Thanks again,

Brendan

P.S. when are either you or Ryan going to appear on BNN market call again? Have not seen yee there for a while now.

Q: In a question from Brendan posted June 22, you referred to various preferred shares you were comfortable with and mentioned ENB.PR.K; I tried searching that and did not get any result. Is that the correct letter?
thanks,

Q: I sent in a question a 3 days ago about using preferred shares in companies in lieu of savings mutual funds like DYN6000. Did you get the question? Also wondering if Preferred shares is a better option because of the dividend then could you give me a list of 6 to 8 in Canada and 4 in the US that you would recommend. Hope both you Peter and Ryan and your families are staying safe.

Regards,

Brendan

Q: Any opinion on this preferred share? I believe they re-set in March 2013 at 3.17% above the Bank of Canada Rate, based on $25 par value. That is lower than the current yield, but better than many rate reset preferreds. Should I hold, sell or buy more? Should I sell and just buy the common shares?

Q: Hi,

What's your thoughts on stepping into CPD at this juncture for income, long term.

Thanks

Q: I asked this question yesterday and I am re-sending as I have not received an answer. Thank You.
Enbridge Inc Pref Ser D
This prefered is currently yielding around 9%. It will reset in Feb 2023. Since interests rates are expected to remain low for the next year or two, is this a safer way to invest in a RIFF for the next 2 years? I expect to sell these shares in 2 years to meet the mandatory withdrawals. What risks should I be concerned about? Other then interest rates going down from here, what can possibly drive the share price further down ?

Q: Hello Ryan and Peter:

I hope you are all staying well in these trying times. We had our stock club meeting last month and one of our members was promoting hard for preferred shares because of the dividend. We purchased it for the club and I would like to know what are the advantages over the common share beyond the obvious of:
1. Preferred shares have higher pecking order in case of bankruptcy.
2. Dividend of the common share will get cut first before the preferred share dividend cut.

I see more disadvantages than advantages:
1. Dividend of the common share is similar to the preferred.
2. Very illiquid on the markets. The preferred can only trade 3000-5000 per day while the common share trades in the millions.

The slight difference in the dividend does not appear to be worth the risk of illiquidity. Also the higher pecking order in term of bankruptcy seems pointless when it comes to Canadian banks. Also the point of the common share dividend getting cut is not a big advantage when the big banks have not cut their dividend in over 80 years and National Bank I don’t include as one of the big banks.

Is there something that I am missing here.


Regards,

Brendan

Q: Dundee has a good dividend and lately been on the rise Just wondered how you feel about in in the future.
Thanks for all you do!
Bonnie




0

Q: Can a company cut the dividend on their preferred shares as easily as they can on their common shares?

Q: in answer to Stephen's question today did you mean Capstone was acquired; if so by whom?
Hugh

Q: Hello 5i Team
There are three companies that have issued preferred shares (Capstone Infrastructure, Co-operators General Insurance and Empire Life) which do not have publicly traded common shares.
As far as I can determine, the companies still file quarterly/annual financial statements on SEDAR, so I can review the financials of the underlying company.
Questions are:
1 - Why do these companies continue to maintain the listing of these preferred shares and given the low interest rates and low trading price, would it be possible that the companies could redeem the preferred shares or purchase them under a NCIB?
2 - Are there potential opportunities in purchasing these preferred shares at opportunistic prices (similar to mid March lows) if we have a general pull-back in the market. I understand that I could have a long hold period for these preferred shares as a result of low trading volume.
3 - Should I concentrate my effort in reviewing other preferred issues and simply ignore these three issues as "noise".
Thanks

Q: Can you give me 5 US based companies with perpetual preferred shares. Safety is the most important factor.
Thanks