Investment Q&A

Q: I have been looking for ways of boosting my income investments; last year I doubled my GIC's (still less than 10% of investments). This year I'm thinking of buying some preferred shares. They have been doing abysmally; many of the yearly lows are of prefs!
I recall the 1980's when long term bonds looked like a sure way to lose money. Investment grade credits paid over 10% interest for 30 years! I'm thinking out-of-fashion preferreds might be a great investment today (with less upside than 1980 bonds, of course).

John

Q: Any specific reason for the continued drop in value in ZPR.

Thank you,

Bob

Q: Good afternoon,

Could you please offer your opinion on the new Mullen Group convertible debenture 5.75%, Nov 30/2026, convertible @ $14.00. Given the decline in the stock is this a good way to participate in growth with income?
Thank you

Thank you

Q: Assuming the RY.PR.H rate reset preferred resets today I have made the following new interest rate calculation;
The new interest rate is the GCAN5YR interest rate plus 2.26%. Today the GCAN5YR is 1.368% so 1.368 plus 2.26 equals 3.628%. This is below the initial 5 year interest rate of 3.9%. I calculate the actual Fixed Rate Calculation Date is August 24, 2019 minus 30 days is July 25 2019, which is only a month & a half away. At that time the GCAN5YR rate will probably be the same as today. Would you please confirm that my new interest rate calculation is correct. Today the RY.PR.H on the TSX is trading at a yield of 5.5%. If my calculations are correct, is the price falling because no one wants to own this preferred when the new lower interest rate is determined. Would appreciate your thoughts. Thanks .. Cal

Q: Most of our preferreds have dropped again this week, BAM by far the most (now about half book value). BAM stock seems to be one that's widely recommended. Your thoughts and advice please.

Q: Clarification on Stuart’s question of May 29th. Based on the 2020 reset rate of 2.64% and current 5 year GOC of 1.46% would result in dividend rate of 4.1%. At today’s price of $16.23 would result in estimated reset yield of 6.3% for next 5 years.

Q: Hi guys

I have held this for quite a while and while I have enjoyed collecting about a 6% dividend off my cost basis the preferred price has been falling lately after being up quite a bit at one point.
I am coming up to the end of a 5 year term so the interest rate will be set again by March 2010. ENB.PF.C currently provides an annual dividend of $1.10 and I am wondering given the current interest rates, if it reset today, would that payment go up or down?
This is my only preferred. My thoughts are maybe, if the payment is looking to be going down, then sooner, rather than later, I should sell this preferred and buy a dividend grower stock , like a Fortis, and get both a descent dividend, and some capital appreciation.

I bought the preferred with the idea of stability, but as you know in the last few years this has not been the case.

All the best

Stuart

Q: Good morning,
What is your opinion on this new financing -Alaris Royalty Corp 5.5% 2024 Convertible Debenture - would you purchase for income and possible growth?
Thank you

Q: "Alaris Royalty Corp. Announces A $100 Million Bought Deal Financing."
What does this do to their debt levels? Do you think this is a sign that all is not going so well at Alaris?

Thanks Always

Q: What do you think of the bought deal alaris is doing. Is this positive or negative.

Q: For many years I had held individual perpetual preferred shares, which I gradually sold and replaced with ZPR about 3 years ago. It had a similar yield, was of course more diversified, and could be easily traded if need be. This seemed like a good move, but after some decent gains it is recently moving back towards my purchase price (not counting dividends). I am contemplating selling ZPR and replacing with individual rate-reset preferreds with a floor. My thinking is that the rate-reset feature should help hold up the price when interest rate are increasing, and the floor should do the same if rates are falling. Could you comment on this strategy, and list some the the pros and cons of the rate-resets with a floor. My preferred share holdings make up about 7-8% of my total portfolio, and I am an income oriented investor.
Thank-you

Q: Hello Team
I like your opinion on PIC.PR.A:CA and PIC.A:CA
would these two be a good addition to an income oriented portfolio?
And why is the dividend on PIC.A so high?
Can you explain how the windup of the fund works, will these funds eventually windup or can they just go down in price and be rolled over?
In addition if you do not think these stocks are a good investment, can you recommend some good solid Preferred stocks with a good long term track record and relative safety?
Thank you in advance and for your great service.
Don

Q: Hello,
Can I make a simple assumption that ZPR seems to be following the general market up an down (below 200 day line and possibly forming base at around $10) and hence at todays' lower number may indicate a buying opportunity?
Cheers
Arzoo

Q: Peter,

What is your opinion of Premium Income Preferred Share ( split share ) PIC.PR.A as an income vehicle? Are the payments taxed as dividends? Are there any other associated fees?

Thanks

Paul

Q: what are your thoughts on conv debs as fixed income. The yields are
quite attractive but some consider them equity like. "they are not
bonds and will get hurt in a recession" What are the risks and are they
legitimately fixed income ? Companies like AG Growth, CargoJet, etc.

Q: Hi Peter, Ryan & Co.
Capital Power is selling a new issue of preferred shares (Series 11). They are rate-resets with a 5.75% coupon. As a dividend investor, I like this yield, but am wondering about the strength of CPX's balance sheet. Can you please comment on the company's overall debt load, strength of the balance sheet, and riskiness of this particular issue? Thanks!

Q: I currently hold Royal preferred RY.PR.AZ series which Royal is offering to convert to floating rate non cumulative series BA., which will pay a quarterly dividend of 2.21% over T bill rate. If the Bank of Canada decides to lower its rates, will this not affect the dividend? Should I just stay with the AZ series for another 5 yrs? They are held in a RRIF

Q: Hi. I'm looking for some 'safe', high yield income for the next 2 years. Do you like any of these split-share corps. for my purposes? If you could please explain you answer. Thank you.

Q: Goodmorning All at 5i! What are your thoughts on split preferred shares as a conservative investment?Any caveats? Cheers, Tamara

Q: Preferreds declined in Nov-Dec and haven't come back. With interest rate peaking or flattening, is there any chance CPD or HPR will come back?