Investment Q&A

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.

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

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

Q: Are preferred shares ETFs a good buy? They keep sinking lower. Buy the dip on ZPR.TO?

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.

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.

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!

Q: Why is Canadian Western Bank preferred series B trading so far below its par?

Q: What is your read on this preferred? Would they behave similarly to bonds in regards to capital appreciation?

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.

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.

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

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

https://canadianpreferredshares.ca/

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

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.

Q: Could you pls. explain the conversion options for the current 5 yr rool-over. What would you recommend and why?
Thank you, Hugh

Q: Hi Peter and Staff

This pref had held up well but is getting slammed this week badly maybe even worse than the BPO prefs of which I also own . I have read all the BPO answers - thoughts on the AX.PR.I please

Thanks for all you do
Dennis

Q: What do you folks think about this preferred. I like the div. but looks like it could be called away at $50 in 2026. Don't like the idea of taking a capital loss.

Q: I saw your recent answer on BPO preferreds. I have held these for a few years now. What do you see as the likelihood of BPO ceasing to exist ? There seems to be quite a bit of panic here.

Thanks,
Mark

Q: I have zero allocated to fixed income. My brokers make it tedious, difficult and expensive to buy T-Bills. I would be happy to ignore this asset class except the apps I use keep scolding me (as did 5i analytics last year). I regarded securities like BCE.us , AQN.us and other such dull ones as bond proxies and considered them as fixed income. Is this thinking unwise? I reluctantly turned my attention— at gun point— to preferred shares. Question:

BN.PR.B has declined almost 7.5% in the last month, pushing yield up over 9% p.a. Is the price change just a function of interest rate changes or is this a flawed security? If not this one , would some other preferred shares be better? Loblaws? Enbridge? Or ETFs like HYG? I just want something to tidy up that pesky asset allocation thing and move on to things I understand. Many thanks.