Investment Q&A

Q: Hi, could you please rank the preferred shares of the above companies best to worst in order of dividend sustainability only going forward. Are there any you would avoid. Thanks.

Q: Hi,
Can you offer any thoughts on how you value a convertible debenture, in particular as it approaches maturity? I am concerned in particular with the EFR debenture and am wondering if this would be a good time to sell, as I am back to even on the cost and have picked up some interest payments along the way. The underlying stock does not help ally my concerns. GSY's debenture seems more worthy of holding on, however it has touched on 143.00 this week and brings up the question of exiting while ahead, as opposed to holding on to see if it can continue higher. Any thoughts you can offer on this situation would be greatly appreciated. Thanks for all your hard work and helpful insight.
Dawn

Q: With the speculation that a recession may occur in the next year or so and given the current downward trend of interest rates, what are your views of buying/holding preferred share etfs like zpr and hpr ? Thank-you

Q: Hi, to what extent does BEP’s investment in TA make the dividend on TA preferred shares more secure?

Q: Goodmorning
I own the following preferred share MFC.PR.M which matures on Dec 19 2019
I have not received any information on how to proceed to either retain the current shares or move to the new series can you advise me as how to proceed to obtain further information?
THks
Marce

Q: Two preferred issues trading at 6.42% yield versus 5.74% yield. Reset in June 2023 and Dec 2022 respectively. Can you answer why two preferred issues would trade a such a yield spread?

Q: with maybe future rates cutes in the US is it good to keep these ?

Q: Hello Team,

What is your analysis of the Sept. 30 and Oct. 2 news releases?

Thank you,

Joseph

Q: We have a few blue-chip, all well underwater, reset preferreds. I'm ok with that for these reasons. One is no need to sell for some time. Two is the dividends are much better than GIC income, which is my comparable for our preferreds. Three is my anticipation that these (more tax-efficient) dividends will still much better (than GIC interest) even if rates drop even further if they don't get recalled, ie because the dividend amounts over the next five years will all be a function of the original $25 share value. Q1: Is that anticipation correct? Q2: I'm still fuzzy on roughly how the market price will compare with what it is today (under a no-recall scenario) if the 5-year anniversary is tomorrow or, put another way, will our market price should we need to sell probably still be underwater until interest rates start back up? Thank you!

Q: I have a large capital gain this year and am wondering if this is a good time to tax-offset that by disposing of some reset preferreds ( e.g TD.PF.K; BCE.PR.M; BP0.PR.N; BRF.PR.F) on which I have had considerable losses. Would a Preferred ETF (with an acknowledged lower yield at current prices) be more suitable for a retiree with a quite adequate pension?

Q: The 2.0 version of the rate reset preferreds (with the floor feature) offered by the likes of Enbridge, Brookfield, etc. would seem to provide a compelling combination of high-quality downside protection plus upside opportunity, especially in the existing low-rate scenario. Why are they mostly spurned, and at some point wouldn't the corporations bite the bullet and redeem them at par, to be replaced with other forms of corporate debt with lower liability? Thanks very much.

Q: What is the debt of this company and payout ratio.It seems that they issued lots of bonds.Is this a very indebted company in your view?

Q: What is your opinion on this convertible debenture? on a risk reward vs the common stock ?

Q: I got a corporate action notice for conversion of the Series G shares to H shares. Does it matter to or not to convert? The deadline for response is sep 12, 2019 11:59 am ET
Thanks.
LIping

Q: Good afternoon,

Could you please offer your opinion on the latest cv debenture offered by Innergex ( 4.65%, Oct/26).
Thank you.

Q: Is the poor performance of this stock specific to the company or poor preferred share performance in general? Why are preferreds broadly tanking so badly anyway?

Q: After that 70 million convertible debenture financing. I believe it works out to about 14.3 million shares at a conversion price at $4.87.
Would this be a considerable negative factor on the stock ever getting above the conversion price considering its roughly a 80 million market cap?
thanks Gordie

Q: BBD.PR.D yields above 9%. Are the risks acceptable for such a high yield?

Q: At a current 6% yield, oversold and a solid credit risk, would this be a good time to consider moving into this? I am thinking of this as a shorter term hold (5 years). I understand that it is equivalent to perpetual or long-term bond and thus will fluctuate with interest rates.

Q: Good morning 5i,
I am tempted by cpd, as its price is pretty low and its dividend pretty high. As of yet, I don"t own any preferred shares and wondering whether they are really necessary for diversification. I notice, for instance, that you recommend a certain portion in my portfolio analytics. My dilemma, though, is that we are fairly close to the clawback point and I am a little afraid that more dividends would be detrimental. In fact, I have been putting non dividend US stocks in our non registered accounts for that reason. But, if I really needed the diversification ( and this might be a good time to buy preferred shares) I could probably re arrange things. So, the question is how necessary are they in an already well diversified portfolio
thanks