Investment Q&A

Q: I'm looking to invest in the preferred shares that have a floor to there dividend. Would you recommend a couple of choices that you feel are a good investment.

Thanks Jean

Q: With anticipated increase in US interest rates fixed rate income investments are expected to suffer, examples are ZPL & PGL.

Any thoughts on why preferred shares are experiencing the opposite trend with substantial gains, examples TRP.PR.E & RY.PR.Z?

Q: I hold 2000 EFN.PR.C in the fixed income portion of my portfolio, with the changes that have taken place do you think it is a safe hold?

Q: What do you think of this preferred share issue? Does it pay a cash dividend? What are the risks? Royal Bank of Canada (Ry.PR.J) Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BD.

Q: I wanted to ask about Discovery Air, but the "ask a question" interface doesn't recognize either the symbol or the name - not sure this is how this is supposed to work. I believe that, in a previous iteration of this interface, 'DA.A' was recognized and searchable as such.

In any case, today's press release from Clairvest <http://www.marketwired.com/press-release/clairvest-update-on-its-investment-in-discovery-air-inc-tsx-cvg-2201427.htm> announces their intention to purchase (at a substantial discount) all the common shares not already owned by them or their affiliates. Supposing this occurs, does this devalue the convertible debentures, or do the debs effectively become a kind of private debt? Put another way, could this actually be good for the security of the debentures?

Edit/share (or not) as you see fit.

Q: Can't say enough times what a great service you guys offer.

Is there an EFT similar to CPD but with a focus on American preferreds? Thanks.

Q: Bank of Montreal Rate Reset Preferred Shares Series 40

Is there any downside to this issue, or is it just a good, solid investment?

Q: Are there any equivalents to Canadian rate reset preferred shares in the US?

Q: My Question is on the Transalta preferred shares. I have the series C preferred shares that are paying me 6.8% and with reset this June expect the yield will be about 6.7%. I see that the company decided NOT to go ahead with the proposed exchange of the preferred shares last Friday. Is this a good or bad sign?

How risky do you view the Transalta preferred shares in terms of ability to pay dividends and viability long term of the company?

Please feel free to publish.

Tony

Q: Hi Guys,

Can you please explain the details around TransAlta PLAN of Arrangement on the consolidation of their preferred shares. Good for unit holders or not? Feels like there might be some upside on dividend but concerned that share value might be affected negatively.

Q: A guest on BNN said this was a new kind of preferred share. Is it a good way to diversify portfolio and gain some yield. What are risks to this investment or is owning common stock of TransCanada a better idea.

Q: I am looking for rate reset or floating rate individual preferred shares or ETF for US companies. Could you please provide me a list of ETFs listed in the US and Canada. Where can I find a list of preferred shares for US Companies?

Thanks

Q: I recently bought some of this preferred. I would like to know if it is eligible for the dividend tax credit? If not, pease explain

Q: I have 2 preferred share ETFs (CPD and HPR) that are both up about 6 percent over the last few months. I have noticed a slight outperformance with the actively managed ETF (6.01% vs. 5.59%). The fees are slightly higher with the actively managed ETF (0.64% vs 0.51%). Is it advisable to switch my holdings in CPD and put everything in the actively managed ETF? Is it worth it or is the outperformance a red herring because of the short time period?

Thank you,
Jason

Q: I have a note from you wrt to CPD so am aware of its rate reset properties - which should be positive in the anticipated rising rate environment. However, I have not followed prefs before and wondered how they might perform should we get a significantly negative equity market, and - additionally - whether the managed version might do significantly better in those circumstances. Appreciate your opinion. Thanks.

Q: BIP.un Series 7 rate reset -January 19th question.
What is the ticker for this, as there are "thousands" of Brookfield issues?
Thanks

Q: Good morning,
I see a new issue Brookfield minimum rate reset preferred Series 7. Acceptable? or just stay with CPD? Thanks for your service.
Ted

Q: A new round of rate reset preferreds supposedly will be hitting the market sometime in the next few months. Thoughts please on picking up some in our cash account. We currently have about 15% of our total portfolio in preferreds (POW,TD, ALA, AIMIA, GEI, & CPX) We are conservative investors in retirement without the need for income.
Thanks,
Ted

Q: Hi 5i team, which of the above preferred ETF's would you recommend right now primarily for income and some price appreciation. Which one has the most to gain from increasing interest rates.
Thanks

Q: I was looking to take a position in BB, but I noticed that they have a convertible debenture paying 3.5% and convertible until 2020 at a price of $ 10, I think that this might be a better way to play it, what do you think?.I notice that there is nothing on the ask side, why is that, is it that thinly traded.
Thanks