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Brookfield Asset Management Inc. Class A Preference Sharse Series 8 (BAM.PR.E)
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BCE Inc. Series AE BCE First Preferred Share (BCE.PR.E)
Q: These preferred shares pay a dividend equal to $25 face value x prime rate. The issuers, BCE and BAM, are both blue-chip companies, so the dividends are presumable well-covered. However, the prices of these preferred shares have been hammered, falling in lock-step with interest rates. To me, the sell-off seems to be overdone, perhaps because they are so thinly traded. What is your view on these variable rate preferred shares as a buy and hold investment for a retiree living on investment income? What do you think prime rate will settle out at once the pandemic panic is over, say a year from now?
