Investment Q&A

• Loblaw Companies Limited Second Preferred Shares Series B (L.PR.B)
  • View L.PR.B Profile
  • View Questions on L.PR.B

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

Upvote 0

Read Answer Asked by Charles on September 26, 2023

• Aecon Group Inc. (ARE)
  • View ARE Profile
  • View Questions on ARE

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.

Upvote 0

Read Answer Asked by Steve on September 20, 2023

• Brookfield Office Properties Inc. Class AAA Preference Shares Series AA (BPO.PR.A)
  • View BPO.PR.A Profile
  • View Questions on BPO.PR.A

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.

Upvote 0

Read Answer Asked by Robin on September 19, 2023

• Choice Properties Real Estate Investment Trust (CHP.UN)
  • View CHP.UN Profile
  • View Questions on CHP.UN
• Loblaw Companies Limited Second Preferred Shares Series B (L.PR.B)
  • View L.PR.B Profile
  • View Questions on L.PR.B
• George Weston Limited 5.20% Preferred Shares Series IV (WN.PR.D)
  • View WN.PR.D Profile
  • View Questions on WN.PR.D

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.

Upvote 0

Read Answer Asked by Mark on September 14, 2023

• Liberty Broadband Corporation Series A Cumulative Redeemable Preferred Stock (LBRDP)
  • View LBRDP Profile
  • View Questions on LBRDP

Q: Hi 5i, I'm looking to buy fixed rate perpetual preferred shares. I believe the attached shares are that and please correct me if I'm wrong. Can you please rank these shares and is there anything I should be concerned about. Basically I'm looking to buy preferred shares that wont get called away and are on solid ground as I enter into retirement.

Upvote 0

Read Answer Asked by Mark on September 13, 2023

Q: You listed 6 high credit quality preferred shares for Christian this morning. For any preferred, how is one able to determine it's type ie. perpetual, floating, rate reset? I would be interested in a short list of high credit quality perpetual preferreds that you would recommend.
Thank you.
Dennis

Upvote 0

Read Answer Asked by Dennis on September 12, 2023

Q: Do you have suggestions of preferred shares from Canadian issuers that you would consider attractive at the moment?

Upvote 0

Read Answer Asked by Christian on September 07, 2023

• BCE Inc. Series AH BCE First Preferred Share (BCE.PR.H)
  • View BCE.PR.H Profile
  • View Questions on BCE.PR.H

Q: Do you like this security for a 10% forward yield and eligible for dividend tax credit? I understand it has recently reset to pay $0.15 per month ($1.80 annually). Only in February 2022 it was paying $.05 per month explained by the rapid increase in BOC rates. Is this a financial problem for BCE? I believe it is redeemable by BCE at $25.

Upvote 1

Read Answer Asked by Keith on September 07, 2023

Q: Just curious if you can enlighten me on the liquidity/risk of individual preferred shares? Are they liquid and what would you be looking for at this stage of the interest rate cycle. They seem to be beaten down pretty good, and the yields are compelling. Also, would you do perpetual fixed or floater/resets and why? thanks

Upvote 0

Read Answer Asked by Dan on September 07, 2023

Q: Hi 5i, Looks like my nee.pr.q is being cashed out. Now I'm thinking of selling my new stock NEE when the transaction completes and buying nee.pr.r, what do you folks think of this. Is there better options out there.

Upvote 0

Read Answer Asked by Mark on September 07, 2023

• NextEra Energy Inc. (NEE)
  • View NEE Profile
  • View Questions on NEE

Q: Hi 5i, my NEE.PR.Q shares settled, I had 320 share so was expecting 320 times $50 = $16000, What I got was 218 shares of NEE which is $15097 and the shares immediately went down 4.41% to $14,431. I am very disappointed with these preferred shares. Can you explain what happen.

Upvote 0

Read Answer Asked by Mark on September 06, 2023

• Enbridge Inc. 5.50% Cumulative Redeemable Preferred Shares Series A (ENB.PR.A)
  • View ENB.PR.A Profile
  • View Questions on ENB.PR.A
• Enbridge Inc. cumulative redeemable preference shares Series 1 (ENB.PR.V)
  • View ENB.PR.V Profile
  • View Questions on ENB.PR.V

Q: I am looking at yield opportunities in preferreds given where we are in the rate cycle. Could you please comment on buying high yield individual preferreds from stable companies such as Enb ridge as a strategy, and also why their spreads vary so much. In these two releases the yield for the same company goes from the 6 to 9% range, when the stock yields in the 7s.
Thanks!

Upvote 0

Read Answer Asked by Peter on August 29, 2023

• Brookfield Renewable Partners L.P. Class A Preferred Limited Partnership Units Series 13 (BEP.PR.M)
  • View BEP.PR.M Profile
  • View Questions on BEP.PR.M
• Enbridge Inc. cumulative redeemable min rate reset preference shares Series 19 (ENB.PF.K)
  • View ENB.PF.K Profile
  • View Questions on ENB.PF.K

Q: Hi, what is your opinion on these minimum raté reset prefs? An 8% yield seems interesting given the solidity of the issuers. Am I wrong to assume that they will one day go back to 25$ ? Even if it takes 5-10 years the total return potential and risk/return ratio seems pretty good (especially in a non registered account). Thanks!

Upvote 0

Read Answer Asked by anthony on August 29, 2023

• Innergex Renewable Energy Inc. (INE)
  • View INE Profile
  • View Questions on INE
• Innergex Renewable Energy Inc. Cumulative Rate Reset Preferred Shares Series A (INE.PR.A)
  • View INE.PR.A Profile
  • View Questions on INE.PR.A

Q: I am a 70-year old retiree interested in purchasing INE.PR.A as a long term investment for income. I am more interested in preserving capital than capital gains. Although this security is rated only “4h” by the rating agencies, Innergex would seem to have good business prospects and sufficient cash flow to continue paying dividends on their preferred shares. What do you think?

Upvote 0

Read Answer Asked by David on August 28, 2023

• TC Energy Corporation cumulative redeemable first preferred shares series 9 (TRP.PR.E)
  • View TRP.PR.E Profile
  • View Questions on TRP.PR.E
• Sun Life Financial Inc. Class A Non-Cumulative Preferred Shares Series 4 (SLF.PR.D)
  • View SLF.PR.D Profile
  • View Questions on SLF.PR.D
• Intact Financial Corporation Non-Cumulative Class A Shares Series 6 (IFC.PR.F)
  • View IFC.PR.F Profile
  • View Questions on IFC.PR.F

Q: Hi 5i, how would you rank these preferred shares for safety and would you consider them all buyable?

Upvote 0

Read Answer Asked by Mark on August 25, 2023

• BIP Investment Corporation Senior Preferred Shares Series 1 (BIK.PR.A)
  • View BIK.PR.A Profile
  • View Questions on BIK.PR.A

Q: I believeI that this rate reset will reset on February 28 2024 at the five year Government of Canada rate +3.96% with a minimum reset of 5.85% . If that happened today it would be approximately 8.1%.. Is that correct? Assuming the 8.1% at the reset what would the probability be that these preferreds are redeemed at $25 per share (currently 22.2)?

Upvote 0

Read Answer Asked by Irwin on August 17, 2023

Q: What has happened to the Sedar web site? I used to go there reguarly for information but the new site is impossible to navigate. Example I was looking for the formula used to reset the dividend on ECN.PR.C . I was able to find the rate and the dividend and the reset date on the company web site but I could not find the actual reset formula. So is there a way on the new Sedar website to get at documents filed by a listed company? Some thing I used to be able to do with one click. Thanks

Upvote 0

Read Answer Asked by Dennis on August 16, 2023

Q: Any suggestions for a Web site about US preferred shares?

Thanks

Upvote 0

Read Answer Asked by Daniel on August 15, 2023

• ECN Capital Corp. 6.25% Cumulative 5-Year Minimum Rate Reset Preferred Shares Series C (ECN.PR.C)
  • View ECN.PR.C Profile
  • View Questions on ECN.PR.C

Q: This preferred share is currently yielding 11.3%.
No matter what happens to 5 year government interest rates you are guaranteed 6.25% per annum in the future.
With the dividend tax credit this yield of 11.3 % is approaching close to 15%.

Would you say this is a good buy? Or there are credit issues with the company issuing this preferred share ?
Thanks for your insight

Upvote 0

Read Answer Asked by Terry on August 15, 2023

• Brookfield Property Partners L.P. 6.375% Class A Cumulative Redeemable Perpetual Preferred Units Series 2 (BPYPO)
  • View BPYPO Profile
  • View Questions on BPYPO

Q: Has the dividend on this B/F company been suspended? I can't seem to find any detail on this.

Upvote 0

Read Answer Asked by Claus on August 09, 2023