Q: In anticipation of continuing 'interesting' times, I am considering moving some WN.PR.A over to my TFSA. Since I am in my late eighties I consider this more of a fixed incme investment and less a consumer staple. Given the number of years the issue has exited, I am uncertain as to current redemption. I would appreciate relevant tho'ts. Thanks for all ideas that the team has provided over he past decade+. Bill
5i Research Answer:
With steady strong cash flow and some degree of recession-resistance, we would be very comfortable with WN.PR.A for a conservative investor. The preferred can be called at $25, anytime after Feb. 13, 2025. It is trading as if there is at least some possibility of being called, but even so there would be a small gain. We would consder the yield and safety quite attractive here. Of course, moving to a TFSA takes away the dividend tax credit, so overall portfolio/tax impact should also be considered here, but we would certainly be fine owning this security.