Q: I have a number of Canadian Rate Reset and Perpetual Preferred Shares, which have done very well in the last number of months. These are held predominantly in a Registered LIF Account. The current yields are between 6~7%. The Rate Resets are laddered, resetting in different years. As the reset dates get closer it may impact the value, depending on BOC rate and reset rate. I was looking trimming these and allocating 20% of our Preferred shares BEPR for US exposure.
BEPR currently yields 9% which would increase our income, while providing greater diversification nIt seems to have paid a monthly since at least 2018.
What is 5’s view on BEPR and the safety of its distribution vs Canadian Preferred shares?
BEPR currently yields 9% which would increase our income, while providing greater diversification nIt seems to have paid a monthly since at least 2018.
What is 5’s view on BEPR and the safety of its distribution vs Canadian Preferred shares?
5i Research Answer:
Keep in mind that a higher yield typically means higher risk, though if comparing to resets in a...