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Discussion Starter #1
Hi, I am looking at investing some cash in Claymore's CPD (preferred share ETF). From my own research, it looks good and pays a dividend of 5.44% currently. However, I've heard from several people that the time to invest in preferred shares is over for now.
Are there any thoughts/comments on whether this is accurate? Many thanks.
 

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One thing to note about preferred shares is that they have a tendancy to act like bonds when interest rates are rising. That is, they tend to sell off as you may have seen recently.
 

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Discussion Starter #3
Thanks FT....hadn't thought about that! I'm not finding too much to invest in these days....
 

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Preferred shares are a decent way to get fixed income, especially in an unregistered account, since they are eligible for the dividend tax credit. I wouldn't, however, make it a large proportion of your portfolio.
 
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