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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi, I am interested in Toronto Dominion's preferred share TD.PR.O. It yields 4.85% & is presently trading above 25$. The prospectus states that after Oct 30, 2014, the bank will only pay 25$ if the bank chooses to redeem the shares. Would you at 5i have any insight as to what might happen to the yield after Oct 30? Does it remain at 4.85% forever. Thanks ... Cal
Read Answer Asked by cal on April 06, 2014
Q: Hello Peter
I bought NorthWest Healthcare Properties REIT (TSX: NWH.UN) in 2013. I now think it is structured as a Limited Partnership because they pay "distributions" and not "dividends", but their website doesn't actually say so. Are all .UN listings limited partnerships?

Their website does say : "If necessary an extra distribution will be declared on December 31 each year such that the REIT will not be liable for tax that year."

They also say : "In 2013, 100% of the distributions were tax deferred, by reason of the REIT’s ability to claim capital costs allowance. The adjusted cost base of the Units by the Unitholder will generally be reduced by the non-taxable portion of the distribution."

Their table on the website shows "Total Taxable Income Per Unit" is zero for 2013, but it says the amount is shown in Box 42 [on the presumed T-slip]. The distributions I have received are evidently a "Return of Capital".

Does that mean the distributions I received are not taxable in any way and does that mean they won't be issuing a T-slip to include in my tax return? I haven't received one yet and I have received no answer back from my enquiry to the company. I am ready to file my tax return now but don't know if I should wait till nearly the end of April in case they do send one.

Many thanks........... Paul
Read Answer Asked by Paul on March 27, 2014
Q: Hi Peter & team, I have following prefered shares in cash account: BPO.PR.K, BPO.PR.T, HSE.PR.A, and CM.PR.E, BRF.PR.E,
REI.PR.C in registered account, could you tell me what type of
preferred share they are ?
Thank you. M.N
Read Answer Asked by Motoi on March 25, 2014
Q: I have two questions:

1. your outlook on US-based PFF

2. why do you thing PFF is close to an all-time high while canadian preferred ETFs like CPD and ZPR are ways below their prior highs

Many thanks
Read Answer Asked by Behrouz on March 23, 2014
Q: Hi,

Besides the 31-Dec-18 4.5% Cineplex convertible debentures which have been mentioned on here before, does 5i have some other favourite convertible debenture issues that you could recommend?

Thank you.
Read Answer Asked by Adam on March 22, 2014
Q: I am considering ELF.PR.G as a short term income holding. Has a $25 call 17Oct2014, currently price at a discount. DBRS discontinued Credit Rating in 2006 on this company.
Can you comment on it's short term credit worthiness

Thank You
Ernie
Read Answer Asked by Ernie on March 20, 2014
Q: Hi all,
I'm trying to understand what I conceive as price discrepancy between the atlantic power preferred shares and their convertible debentures. AZP.PR.B is a rate reset presently yielding 12.5% (17.5% after tax consideration) and the longest term (2019) debentures (atp.db.d) yields 13.92% to maturity. Is the 3.6% spread simply due to the added duration (preferreds could be reset indefinitely in theory) and the fact that they are lower down on the balance sheet. Or, is that fact these preferreds were originally issued by Epcor, and are really a held in subsidiary of Atlantic Power corporation. How would this effect the preferred shares in the event of a default.
Thanks again.
Emile
Read Answer Asked by Emile on March 18, 2014
Q: I have a preferred share coming up to the reset date March 31 CCS.PR.D and it will reset to GOC 5 year ~1.46% + 5.21 bp. What will likely happen to the share price on this date? I will get my dividend for sure but the yield will drop hence will the share price drop, stay the same as current price or what?

Derek
Read Answer Asked by Derek on March 13, 2014
Q: Dear Peter, In no hurry for a reply. I own a convertible Debenture with a maturity in 21014. It appears to be trading at the level of my purchase . What will take place at maturity? Will this bond just mature at Par or will the conversion be forced or does the debenture holder have an option?
Read Answer Asked by Phyllis on March 12, 2014
Q: As a retired senior, would CPF.UN (Can 50 Preferred), or would CPD be better for part of the income percentage of my portfolio? I noticed on occasion you have mentioned individual preferred shares. Do you prefer individual preferred or a basket since they are difficult for the retail investor to understand them. I will look forward to your income portfolio.
Thank you. Shirley
Read Answer Asked by Shirley on March 11, 2014
Q: Thanks for the 4 rate-reset preferreds in response to David's inquiry. They look perfect for my needs. One question please. Is the rate reset the only option available to the issuers at reset day, or are there other options.
Read Answer Asked by Tim on March 10, 2014
Q: Rate-reset Prefs
Hi there. Could you please give me, say, three that you like for income, ie. higher but"safe" yield, for a a well balanced retirement portfolio. Thanks as always.
Read Answer Asked by David on March 10, 2014
Q: I am thinking about adding DCD.UN. I realize this is sort of a bond/equity. If you have info on this, I would appreciate your comments.
Thanks.
Read Answer Asked by Alan on March 07, 2014
Q: Do you have any debenture recommendations? What do you think of AXL.DB?
Read Answer Asked by Anthony on March 05, 2014
Q: hi,

I have debentures of Argent energy - aet.db.- expiry June 2018 - Do you think I should hold them or just sell.

Thank you.
Read Answer Asked by cecile on February 27, 2014
Q: We would like to invest in a preferred share. Can you recommend some of the best for us?

Thank you
Read Answer Asked by Vicki on February 26, 2014