Investment Q&A

• Toronto-Dominion Bank (The) (TD $131.17)
  • $131.17 P/E (TTM): 11.12X Cap: $223.89B
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Q: I am looking for a preferred that can be expected to hold its' value over time. I understand that it should be a decent credit rating, have a fixed reset rate and be non-convertible. Does this preferred meet that criteria, or could you recommend one ?

Thank you,

Tim

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Read Answer Asked by Tim on January 24, 2018

• Miscellaneous (MISC)
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Q: Are preferred shares a better investment for someone hoping to live on dividend income during retirement?

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Read Answer Asked by Henry on January 15, 2018

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Q: I have a reset preferred that has done quite well for me this year.I would like to add another but i am struggling to find a resource on the internet that gives me "current" listing,pricing,rating,duration,etc. Could you help me out.
How do preferred shares perform in a stock market decline?

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Read Answer Asked by Randy on January 12, 2018

• Aecon Group Inc. (ARE $31.87)
  • $31.87 P/E (TTM): 318.7X Cap: $1.96B
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Q: I have a $20,000 C.V. 5.5% Dec 2018. In view of the proposed takeover of Aecon, should I exercise my option to convert to common shares, and if so, when would be the appropriate time to do so ?

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Read Answer Asked by Harold on January 12, 2018

• ECN Capital Corp. (ECN $3.03)
  • $3.03 P/E (TTM): 110.02X Cap: $853M
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Q: Do you think the preferred share for ECn( ECN.PR.A) would be a good investment if the company does well. This will be held in an RESP.
Thank you for your answer.

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Read Answer Asked by judy on January 11, 2018

• Brookfield Renewable Partners L.P. (BEP.UN $37.44)
  • $37.44 Cap: $24.50B
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Q: What do you think of this new issue?

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Read Answer Asked by Jerry on January 10, 2018

• Enbridge Inc. (ENB $63.54)
  • $63.54 P/E (TTM): 23.98X Cap: $137.07B
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Q: Hi and all the best to you for 2018! I hold some ENB.PR.U for income and believe it will stay stable for the foreseeable future as it has fluctuated within a narrow band over the past months. I would be grateful for your thoughts on this however for longer term. Cheers.

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Read Answer Asked by Gregory on January 10, 2018

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Q: I am currently setting up my portfolio with 30% allocated to fixed income. With bond yelds being quite low, as well as the risk of capital erosion with rising interest rates, can you provide some advise on how i should structure the fixed income portion. What alternatives should i use? Should rate reset preferreds be part of this portion? Thank you

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Read Answer Asked by Vineet on January 08, 2018

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Q: What are your thoughts on ZUP for income as a “safe” investment? Thanks. Peter

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Read Answer Asked by Peter on January 08, 2018

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.87)
  • $13.87 P/E (TTM): 7.23X Cap: $1.05B
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Q: Hi Peter and Team,

Can you advise your top two reset preferred stocks and if they offer minimum resets? Also from a macro point of view is this an alright time to purchase?

Thanks
Chris

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Read Answer Asked by Chris on January 08, 2018

• TransAlta Corporation (TA $17.24)
  • $17.24 Cap: $5.03B
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Q: I am considering the purchase of some Transalta preferred shares. Before making a move, I would first like to know whether Transalta has made any progress reducing the debt on their balance sheet in the past year. Your comments are appreciated!

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Read Answer Asked by Gregory on January 03, 2018

• Royal Bank of Canada (RY $235.52)
  • $235.52 P/E (TTM): 16.27X Cap: $329.09B
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• BCE Inc. (BCE $33.02)
  • $33.02 P/E (TTM): 4.85X Cap: $30.68B
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• Manulife Financial Corporation (MFC $52.00)
  • $52.00 P/E (TTM): 15.93X Cap: $86.74B
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• TC Energy Corporation (TRP $74.90)
  • $74.90 P/E (TTM): 22.59X Cap: $77.20B
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Q: Looking to purchase some individual rate reset preferred shares. Looking for relatively early reset dates. Would you be comfortable with: BCE.PR.Q, MFC.PR.J, RY.PR.H, TRP.PR.G ?
Regards,
Robert

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Read Answer Asked by Robert on December 26, 2017

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Q: Season G's...How would you compare a convertible bond etf vs short term bond etf in a rising interest rate environment. Specifically regarding capital erosion and income, can they really be compared as similar investments all the best gary

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Read Answer Asked by Gary on December 21, 2017

• PIMCO Monthly Income Fund (Canada) (PMIF $18.36)
  • $18.36 P/E (TTM): 3.53X Cap: $4.14B
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Q: Is there any difference between the etf and the mutual fund pm005? Would a combination of pmif and cpd make sense for the fixed income portion of a portfolio? What percent of each would you suggest?

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Read Answer Asked by Paul on December 19, 2017

• ECN Capital Corp. (ECN $3.03)
  • $3.03 P/E (TTM): 110.02X Cap: $853M
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Q: I bought some of this preferred at 25.20. With interest rates holding steady or maybe a bias towards rising interest in Can and US is now a good time to add to my position in this preferred? I invest mainly for income.

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Read Answer Asked by Roy on December 18, 2017

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.87)
  • $13.87 P/E (TTM): 7.23X Cap: $1.05B
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Q: For a retired investor, what % of your total would you deem appropriate for preferred shares and would CPD be a good ETF for this?
Thanks

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Read Answer Asked by Rudy on December 18, 2017

• Enbridge Inc. (ENB $63.54)
  • $63.54 P/E (TTM): 23.98X Cap: $137.07B
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• BMO Laddered Preferred Share Index ETF (ZPR $12.40)
  • $12.40 P/E (TTM): 5.56X Cap: $1.48B
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Q: Any comments about the recent ENB rate reset preferred issue....it seems to have a very favourable floor reset rate although the spread off 5 year Canada's does seem a little rich.
In addition, any new comments ZPR
Thanks

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Read Answer Asked by Lucinda on December 15, 2017

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Q: What sort of circumstances would a company redeem their preferred shares? Are they more likely to be redeemed if they are trading at a premium (above $25.00)?

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Read Answer Asked by Robert on December 15, 2017

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.87)
  • $13.87 P/E (TTM): 7.23X Cap: $1.05B
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• BMO Laddered Preferred Share Index ETF (ZPR $12.40)
  • $12.40 P/E (TTM): 5.56X Cap: $1.48B
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• Invesco Canadian Preferred Share Index ETF (PPS $12.88)
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Q: Your opinions on these ETFs, please.

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Read Answer Asked by James on December 13, 2017

• Chesswood Group Limited (CHW $0.90)
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Q: Chesswood has announced that they will redeem all $20 million of its outstanding 6.5% convertible debentures in January 2018, well ahead of their maturity date of December 31, 2018
Can you explain 1) what is a convertible debenture? And 2) how material is it when these are redeemed ahead of their maturity date?
Thanks
John

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Read Answer Asked by John on December 13, 2017