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Pembina Pipeline Corporation cumulative redeemable min rate reset Class A pref shares Series 21 (PPL.PF.A $25.99)
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Brookfield Corporation Class A Preference Shares Series 48 (BN.PF.J $25.87)
Q: Assume that these shares were reset today , what would be the
effective dividend on a percentage basis. Thanks BRIAN
effective dividend on a percentage basis. Thanks BRIAN
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Pembina Pipeline Corporation cumulative redeemable min rate reset Class A pref shares Series 21 (PPL.PF.A $25.99)
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TC Energy Corporation cumulative redeemable minimum rate reset first pref shares Series 15 (TRP.PR.K $25.00)
Q: Hi Peter & 5i,
These are preferred minimum rate reset shares. Both have a minimum reset at 4.90%. Never to be reset at below this rate.
My questions:
1. If there is a minimum rate reset, investors are not concerned about falling rates (because falling rates don't affect these) but they are concerned about the ability of TC and PPL to pay the future dividends.
2. In your opinion should investors be concerned about the ability to pay the preferred share dividends? (There are lots of common share dividends that would be cut before the preferred share dividends).
Thank you for your answer and calmness during these unforseen times.
These are preferred minimum rate reset shares. Both have a minimum reset at 4.90%. Never to be reset at below this rate.
My questions:
1. If there is a minimum rate reset, investors are not concerned about falling rates (because falling rates don't affect these) but they are concerned about the ability of TC and PPL to pay the future dividends.
2. In your opinion should investors be concerned about the ability to pay the preferred share dividends? (There are lots of common share dividends that would be cut before the preferred share dividends).
Thank you for your answer and calmness during these unforseen times.
Q: I found the earlier question about PPL prefers interesting. So my thought is to sell my PPL common and get the tax loss and buy the PPL preferrred even though the up side on the prefers is only about 100%. In doing some research I found that I do not understand the dynamics of rate reset perfers. The A is reset in 2013 and is down 2.5% today. The S is reset in 2020 and is up 7%. Both are down about the same from the issue. I would have thought that the 2020 resets would be much less valuable as they are sure to be called at the current market price and reissued at low interest. What am I missing