Investment Q&A

• Cenovus Energy Inc. Cumulative Redeemable First Preferred Shares Series 1 (CVE.PR.A)
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Q: Hi 5i Research team -

Can you please give me a “Preferred Shares for Dummies” overview and opinion on this series of preferred from Cenovus? What exactly can I expect for a return when investing in this, and over what period ? I think they are redeemable at $25 (?)

Thanks.

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Read Answer Asked by James on July 19, 2023

Q: What are the main risks of this debenture? What will happen if the company’s stock price is lower or under the conversion price?

Thanks,
Lipng

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Read Answer Asked by Liping on July 11, 2023

• Canadian Utilities Limited cumulative redeemable second preferred shares series FF (CU.PR.I)
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• Manulife Financial Corporation Non-Cumulative Class A Preferred Shares Series 2 (MFC.PR.B)
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Q: I currently hold the above noted preferreds in an unregistered cash account, and they are the worst performers. Would it be advisable to take the losses and move on to something else, or sit tight and continue to get the dividends?

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Read Answer Asked by steve on July 06, 2023

• Brookfield Corporation Cumulative Class A Preference Shares Series 17 (BN.PR.M)
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Q: Hello 5i Team,
I have owned perpetual preferred shares in Brookfield Corp. for many years. They formerly traded under the symbol BAM.PR.M, but after the corporate reorganization/spinoff of Brookfield Asset Management, they now trade under the symbol BN.PR.M, which is the parent company.
1. Has the risk profile of this share issue changed post reorganization/spinoff?
2. Is the issue still considered "investment grade" (Pf1 or Pf2?)
3. What is a good source of information on Canadian preferred shares and their risk
ratings?
Much appreciated,
Brian

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Read Answer Asked by Brian on July 04, 2023

Q: Hello. I am looking for some advice on preferred shares. Given the current situation of rising interest rates, which type of preferred shares (reset, perpetual, or floating) should I buy to maximize my dividend income and capital appreciation in the future? Thank you.

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Read Answer Asked by Esther on June 21, 2023

• Bank of America Corporation (BAC)
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• Citigroup Inc. (C)
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• Royal Bank of Canada (RY)
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• Toronto-Dominion Bank (The) (TD)
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Q: I have some available cash in my TFSA (CAD & USD) I was wondering what are you preferred stocks to buy and hold over the summer now that the debt ceiling is lifted. I am looking for something with short term growth potential over the next 4 months but not high risk.

Thanks

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Read Answer Asked by Nancy on June 06, 2023

Q: I'm 83 and have income stocks in my non-registered portfolio. There are many preferreds with 6% or 7% payouts, tax advantages. (I(I notice at least half of the new lows on several Saturdays, as reported in the Globe, are preferreds. I've also heard preferreds may be taxed differently. Are the feds thinking about not letting the corporations use preferreds in a tax-effective way, or might they no longer allow us to gross up the interest payments, which in effect gives us an even higher payout. There must be some reason why there are so many pref bargains.
John

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Read Answer Asked by John on June 05, 2023

• BMO Laddered Preferred Share Index ETF (ZPR)
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Q: Are preferred shares ETFs a good buy? They keep sinking lower. Buy the dip on ZPR.TO?

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Read Answer Asked by Patrick on June 05, 2023

• Pacific Gas & Electric Co. (PCG)
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Q: Hi 5i, what do you folks think of this preferred from Pacific Gas and Electric Co. Looks like there troubles are behind them though the stock itself is not paying a dividend yet, thanks.

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Read Answer Asked by Mark on May 25, 2023

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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Q: Why is this preferred share index trading at 52 wk lows ? I believe interest rates are nearing their peak and when the numbers begin to show the recession spreading though out the economy ( rising unemployment etc.), feds may begin to ease.

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Read Answer Asked by adam on May 19, 2023

• BMO Laddered Preferred Share Index ETF (ZPR)
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• Global X Active Preferred Share ETF (HPR)
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• TD Active Preferred Share ETF (TPRF)
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Q: Could you tell me the difference between these ETFs and would you suggest having just one or all in ones portfolio. Currently I have ZPR in a margin account. I have some room in a TFSA; I'm wondering if I should leave that for my Reit ETF - ZRE as I'm moving away from growth toward income. Why are they all down right now? Is it a good time to buy or is it best to wait? Thank you!

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Read Answer Asked by Pat on May 12, 2023

• Canadian Western Bank Non-Cumulative 5-Year Rate Reset First Preferred Shares Series 5 (CWB.PR.B)
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Q: Why is Canadian Western Bank preferred series B trading so far below its par?

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Read Answer Asked by Paul on April 24, 2023

• TC Energy Corporation cumulative redeemable first preferred shares series 7 (TRP.PR.D)
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Q: What is your read on this preferred? Would they behave similarly to bonds in regards to capital appreciation?

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Read Answer Asked by Francisco on April 24, 2023

• ECN Capital Corp. 6.25% Cumulative 5-Year Minimum Rate Reset Preferred Shares Series C (ECN.PR.C)
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Q: ECN preferred rate reset preferred shares are trading at a $3.00 discount to their $25.00 par value. That makes them over 9 per cent yield. What is the risk on these preferreds? The income is nice and it looks reasonably safe.

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Read Answer Asked by Paul on April 19, 2023

• Shaw Communications Inc. (SJR.A)
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Q: Shaw Communications Inc. were not sold. These shares were redeemed.

Do I still have to pay capital gains in my invest/cash account?

Thank you.

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Read Answer Asked by Ross on April 17, 2023

• TC Energy Corporation cumulative redeemable first preferred shares series 3 (TRP.PR.B)
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• Sun Life Financial Inc. Class A Non-Cumulative Preferred Shares Series 3 (SLF.PR.C)
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• Enbridge Inc. cumulative redeemable preference shares series B (ENB.PR.B)
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Q: I own the the following preferred shares: ENB.PR.B, SLF.PB.G and TRP.PB.B. What's your opinion on these for a conservative investor? Is the dividend safe? Is there much chance of improved performance in the short to medium term? Thanks - Richard

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Read Answer Asked by RICHARD on April 14, 2023

Q: With reference to a question from cal re resets he may find this site informative

https://canadianpreferredshares.ca/

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Read Answer Asked by Leon on April 13, 2023

• Miscellaneous (MISC)
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Q: I have several 5 year rate reset preferred shares in my RRSP. Is there a preferred share website that shows preferred shares future reset dates. Thanks … Cal

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Read Answer Asked by cal on April 13, 2023

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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• BMO Laddered Preferred Share Index ETF (ZPR)
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Q: I own prefered share ETFs in a diversified revenue/dividend RRSP portfolio.those ETF are at loss(10-20%) and at a lowest annual stock value.I did believe that those ETF would bring a least , a certain stability,wich is obviously not the case.I shall keep those ETF if there were a reasonnable probability of returning to previous values (+10%..),and sell them if more downtrend is expected.In this perspective,your impression as "hold","sell"(or eventually "buy" !)will be greatly appreciated.

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Read Answer Asked by Jean-Yves on April 12, 2023

• Artis Real Estate Investment Trust Pfd Unit Ser I (AXPRI)
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Q: Could you pls. explain the conversion options for the current 5 yr rool-over. What would you recommend and why?
Thank you, Hugh

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Read Answer Asked by Hugh on April 11, 2023