Investment Q&A

Q: Hello 5i team,
CPD has jumped up a bit in the past few weeks. Just curious about what is pushing the preferred ETF up? Is it the assumption that rate increases have halted(slowed down)?
Andrew

Q: Hi could you please comment on the Brookfield Office Property Inc, 6.359 Cum.Min RR CLAAA PFD S11 . It looks like a great buy with a very high projected dividend your thoughts please

Q: I am retired and a dividend investor in corporations which receive the dividend tax credit as any investments would be in an unregistered account. Would you think it’s timely to purchase some preferred shares for a 5 percent position, doing so over the next couple of months. If you think it is worthwhile, please provide 4 or 5 preferred shares that you would recommend.

Capital preservation and liquidity is important and unless the dividend is greater than 7 percent I would assume you would be better off just investing in some blue chip large cap companies with high yields where there is a chance for more capital appreciation. ALSO I would like you to consider minimum rate reset preferred shares that would reset within the next 12 months and if they reset today what would the yield be.

Thanks BRIAN

Q: Which do you prefer to invest today: TLT or preferred stock ETFs. For preferred stock ETFs, could you suggest a few? Please explain the reason. Thank you.

Q: Could you please tell me what is the risk of buying this preferred today? I believe it resets in Sept 2027. Rates will likely be lower then, but what would the yield and price look like then relative to today's value and rate. I'm looking for USD income but with a dividend tax credit benefit. Any other suggestions (MG, NTR, QSR?) instead of this strategy? Thanks

Q: What are you thoughts on this preferred share?

Q: This Brookfield Office preferred is trading with an over 12% yield and if I understand correctly is resetting on December 31, 2023 at a higher rate. Why is it trading down lately with rates so high and resetting so soon. Knowing that it is higher risk would you consider it a buy for its high yield. Also could it be called for a large capital gain on Dec 31.

Q: I like these two preferred shares but can you tell me who is on the hook to pay the dividends, Is it Edison and Charter. Hate to be cought off guard if things really head south. As always thank for your help!

Q: I have read your comments on ECN. But with the debentures (ECN.DB.B) yielding over 9% and the preferreds (ECN.PR.C) over 13% someone hold my hand!

Q: How safe do you view these as? Has Brookfield Properties ever defaulted on preferred shares before? If there is no default then by July 1, 2027 (next reset date) the units should rise in value quite a bit?

Q: Can you comment on DND's financing announcement. What does it mean and what impact will it have on operations in the future? Is it a good move? Market appears not to like it as of Friday afternoon.

Q: hello 5i:
We've held a small position in PFFD for quite some time, with a significant loss (glad its small position).
But: the Fed narrative has changed from raising to pausing and the next step is inevitably lowering. Yes, there may be another small raise and yes, I know the higher for longer argument.
PFFD pays out over 7% in our RRIF, in an investment that appears to have very little risk of more downside and even a large amount of upside if things were to return to pre-covid levels.
Summing up and being a bit of a contrarian (skate to where the pucks going?), would you agree with my assessment? Can you see any reason for anything but limited downside with new money in the preferred space? What am I missing here?
thanks
Paul L

Q: Can I have your opinion fortes preferred rate reset for registered account something for income RIFF ACCOUNT

Q: JPM.PR.K. Looking at this preferred and wondering if this pref has a reset date and rate similar to our reset prefs...can you tell me if they do , please and thank you , and if so the rate and the date...or are these like a perpetual pref...Cheers

Q: Could you recommend this or any other canadian ETFs that is mostly invested in reset preferred shares of canadian companies.

Q: Goood Morning.
I beleieve peferred shares have been sliding into an interesting buying oportunity. I would like to find and etf or mutual fund that is mostly in the rate reset category. I know of CPD.CA but I believe this one is mostly regular preferreds. Any ideas?
Thank you.

Q: Hello 5i,

Is L.PR. B an interesting buy for the income with a rate of 6.50% or is it better to wait for it to continue sliding downwards for a while longer.
In the current interest rate environment, what rate of return could help halt its descent. There are preferreds that reach 7 or 8% yield, depending of course on their category, the credit quality of the company, the sector...

Any information is welcome.

Thank

Q: Convertible debentures are coming due towards year end. What impact, if any, do you expect this may have other than possibly rolling them over to a higher rate and lower conversion price.

Thanks.

Q: I'm trying to understand how safe the preferred shares of Brookfield Office Properties (BPO) are as they are selling at a big discount to par. I understand that obligations of BPO preferred shares are guaranteed by all of the companies within the umbrella of the Brookfield Property Partner L.P. (BPP) group but am not clear whether the obligations of BPP are guaranteed by its parent .
Any information and views you have on this issue would be welcome.

Q: Hi 5i,
I currently own CHP.UN and L.PR.B. I would like your opinion, is there value in selling CHP.UN and buying WN,PR.D to strengthen my portfolio or should i just buy more L.PR.B. I looked but don't really understand the relationships here.