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BCE Inc. Cumulative Redeemable First Preferred Shares Series T (BCE.PR.T)
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Brookfield Renewable Partners L.P. Class A Preferred Limited Partnership Units Series 7 (BEP.PR.G)
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TC Energy Corporation cumulative redeemable minimum rate reset first pref shares Series 13 (TRP.PR.J)
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TC Energy Corporation cumulative redeemable minimum rate reset first pref shares Series 15 (TRP.PR.K)
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Enbridge Inc. cumulative redeemable minimum rate reset preference shares Series 17 (ENB.PF.I)
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Enbridge Inc. cumulative redeemable min rate reset preference shares Series 19 (ENB.PF.K)
Q: An interview with the Globe & Mail about ten days ago, David LePoidevin of Canaccord Genuity said "Our most exciting trade right now is the reset, fixed-floating preferred shares, which we’re buying at an average price of about 60 cents on the dollar. The dividends were reset about three years ago when rates were 0.5 per cent. The five-year is above 3.5 per cent, so the dividend increases are stunning. Not enough people are doing the math, but you can buy something that looks like it’s unattractive today, but in two years, you’re going to have a yield that might be approaching 9 or 10 per cent." Elsewhere he clarified that he is buying only non-bank preferreds.
What is your view on this? If you agree, what rate reset preferreds would suggest? Mr. LePoidevin mentioned BCE, TRP and ENB but no specific series. The tickers above are just my guesses.
What is your view on this? If you agree, what rate reset preferreds would suggest? Mr. LePoidevin mentioned BCE, TRP and ENB but no specific series. The tickers above are just my guesses.
