Q: This preferred share is currently yielding 11.3%.
No matter what happens to 5 year government interest rates you are guaranteed 6.25% per annum in the future.
With the dividend tax credit this yield of 11.3 % is approaching close to 15%.
Would you say this is a good buy? Or there are credit issues with the company issuing this preferred share ?
Thanks for your insight
No matter what happens to 5 year government interest rates you are guaranteed 6.25% per annum in the future.
With the dividend tax credit this yield of 11.3 % is approaching close to 15%.
Would you say this is a good buy? Or there are credit issues with the company issuing this preferred share ?
Thanks for your insight
Q: ECN preferred rate reset preferred shares are trading at a $3.00 discount to their $25.00 par value. That makes them over 9 per cent yield. What is the risk on these preferreds? The income is nice and it looks reasonably safe.
Q: Hi Peter and 5i,
Here is your answer to the last question on ECN.PR.C. November 2022.
"Yes; while it is a small company we are comfortable with its credit risk, and the dividend was re-set in June for the next five years. Note the shares can still fluctuate and decline if rates rise or investors worry about the company, but the dividend should be stable and fine."
Do you still feel the same way about this Preferred given the current circumstances of the company?
Thank you for your valuable service.
Cheers
Here is your answer to the last question on ECN.PR.C. November 2022.
"Yes; while it is a small company we are comfortable with its credit risk, and the dividend was re-set in June for the next five years. Note the shares can still fluctuate and decline if rates rise or investors worry about the company, but the dividend should be stable and fine."
Do you still feel the same way about this Preferred given the current circumstances of the company?
Thank you for your valuable service.
Cheers