Earnings
December 17, 2017 - BRE
New! Brookfield Real Estate Services Inc. Q3-2017 Earnings Update .....
December 15, 2017 - RCI.B
New! Rogers Communications Inc. Q3-2017 Earnings and Price Target .....
December 14, 2017 - SJR.B
Shaw Communications Inc. 2017 Earnings & Price Target .....
December 13, 2017 - BCE
BCE - Q3-2017 Earnings, Price Target Update .....
December 12, 2017 - T
Telus Corp. Q3-2017 Earnings & Price Target Update .....
December 10, 2017 - KEG.UN
The Keg Royalties Income Fund - Q3-2017 Earnings .....
December 9, 2017 - MKP
MCAN Mortgage Corp. Q3-2017 Earnings & Price Target Update .....
December 7, 2017 - AI
Atrium Mortgage Investment Corp. Q3-2017 Earnings .....
Recommendation Changes
SJR.B, FN, KEY, MRT.UN, SRU.UN, more...

Preferred Shares- Past, Present, Future - Earnings: EMA, RNW, CPX, INE, BEP

This is only a sample of the article, please login to view the entire article

When it comes to earning reliable income beginning when markets bottomed following the Global Financial Crisis, the universe of acceptable investments not only shrinks year by year, so do the available yields. One of the remaining sectors is preferred shares.

The preferred shares group has evolved from being largely populated with fixed-rate dividend payors, to a much greater prevalence of issues offering variable dividend rate-resets adjusted every 5 years based on the Government of Canada 5 year bond yield. Investors wanted protection from rising interest rates and corporate finance departments were more than happy to oblige. This week's economic comments focus on the price trends for each of these two distinctly different types of preferred shares since the Global Financial crisis, and the implications this has for future performance in this group and interest rates.

Earnings updates are focused on companies operating in the power generation and utility distribution businesses. The grouping includes Emera Inc. (EMA, EMA.PR.A,B,C, E,F) Transalta Renewables Inc. (RNW), Capital Power Corp.(CPX, CPX,PR.A,C,E,G), Innergex Renewable Energy Inc. (INE, INE.PR.A,C) and Brookfield Renewable Energy Partners LP (BEP.UN, BRF.PR, A,B,C,E,F. BEP.PR.E, G, I). The current dividend yields for each are 4.4%, 5.5%, 6.3%, 4.5% and 6% (in Canadian dollars) or on average 5.3% were they all purchased together at current prices. Each has the potential for dividend growth from active capital development programs and a regulatory regime that typically grant annual rate increases. Revenues are predominantly based on long term contracts with price escalations.

You must be a member to view the entire article, please subscribe or login


Login
Username
Password
New Issues & Acquisition
December 15, 2017
New! Coverage Universe - Weekly Price Changes Dec 8-15, 2017
December 8, 2017
Coverage Universe- Weekly Price Changes Dec 1-8, 2017
December 6, 2017
AG Growth International - New Convertible Debenture
December 6, 2017
Kinder Morgan Canada Inc. 5.2% Rate Reset Preferred Share New Issue
December 5, 2017
Fiera Capital Corp. - New Convertible Debenture
December 4, 2017
Melcor REIT - New Convertible Debenture
December 4, 2017
Enbridge Rate Reset, Minimum Guarantee New Issue
December 1, 2017
Coverage Universe - Weekly Price Changes Nov 24-Dec 1, 2017