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I know this isn't the best time but I'm thinking ''suncor & hse ''. They're not exactly dirt cheap but I'm sure that, in the long run, they will prove to be good buys. Husky oil sells to the Asian Market and Suncor still has decent dividends.
Of course right now the oil is in Negative. But that doesn't mean it won't bounce back. CFQ is also decently priced at the moment.
articles are all over the place regarding husky energy so I won't poke the various sources. yet they point here that they had dollar dividends in 2003&05
 

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Added to SLF and MFC today
Buying insurance companies?? Before you put too much into those, check how they made out between 2007 and now. SLF took 11 years to recover to 2007 price and MFC never has.
I have owned both at times, so just passing on experience.
 

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Those names only make up a small % of my portfolio. I think insurance companies are facing different problems today than they were during the financial crisis. I'm not sure MFC will ever get back to 2007 levels but I do see upside buying at these levels and plan on holding / DRIPping long term. I should revisit this post in a year!
 

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Most people don't post their buys as they are worried about looking foolish...thanks for posting your Pablo. And, ya, most of us that take advantage of this
depression
will look like geniuses soon.
 

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. And, ya, most of us that take advantage of this
depression
will look like geniuses soon.
Like that 9.00 fts reset we both own that will reset at 1.9% soon. Imagine what that will be worth once interest rates recover :)
 

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Regarding the Fortis H series Reset:
Fortis Inc. hereby announces that on June 1, 2020 holders of the currently outstanding Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shares, Series H of the Corporation have the right to convert all or part of their Series H Shares, on a one-for-one basis, into Cumulative Redeemable Floating Rate First Preference Shares, Series I of the Corporation and that the holders of the currently outstanding Series I Shares have the right to convert all or part of their Series I Shares, on a one-for-one basis, into Series H Shares. There are currently 7,024,846 Series H Shares and 2,975,154 Series I Shares outstanding.


Subject to the conditions described below, holders of Series H Shares or Series I Shares who do not exercise their right to convert such Shares on the Conversion Date will continue to hold their Series H Shares or Series I Shares, as applicable.
 

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You don't think it will be worth more as interest rates rise? I like to think that most of these issues are currently mispriced, but that's only my opinion. I enjoy grabbing a few shares 5% below ask from time to time.

At any rate its a pretty good way to 6.4% tax advantaged return in an investment account. Fortis is pretty solid debt to buy. I like the current income & like the potential for capital gains in the future, although the lack of liquidity will require patience to sell.

To each his own.
 

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Eder - what's the skinny on FTS.PR.H?
I'm not too informed on Prefs - tried to unnerstan...but the yield calcs freaked me out.
currently fts.pr.H is around 10. do I conclude that this one will crank out 6.4% dividend for the next 5 yrs (even tho price may go up down and sideways)?
 

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You don't think it will be worth more as interest rates rise? I like to think that most of these issues are currently mispriced, but that's only my opinion. I enjoy grabbing a few shares 5% below ask from time to time.

At any rate its a pretty good way to 6.4% tax advantaged return in an investment account. Fortis is pretty solid debt to buy. I like the current income & like the potential for capital gains in the future, although the lack of liquidity will require patience to sell.

To each his own.
Right now, the BOC-5 rate is 0.44%. On June 1st, FTS.PR.H wil reset at 1.45+BOC-5. Right now, that will be 1.89%. THis based on $25 par . Today the shares are trading at $9.79. That means that if bought today, they would yield. 4.83%. And that would be for the next 5 years until the next reset date. If interest rates in general go up, that 4.83% will become less and less attractive. The price of the shares will then go down. This is what I expect will happen.

I paid $14.68 for my few shares (luckily, I don't have many!) After June 1st, the yield on my cost will be 3.22% and that will not change for 5 years. I bought these as a learning exercise. I have learned that buying that low spread reset pfd was a mistake :(

If I convert 1 for 1 to FTS.PR.I as outlined in release posted above, my shares will then earn a dividend equivalent to 1.45+GOC-3month T-Bill, adjusted quarterly. Right now, that is 1.45+0.21% for total of 1.66% on par value. Not as good as H series, but if interest rates rise, so will the 3-month T-bill rate and in the end the I series may be a better bet. However, predicting interest rates is a mugs game - they could go negative.

I don't subscribe, but expect James Hymas to post a recommendation on Prefblog regarding the conversion.
 

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Dubmac...The shares are poised to reset and the yield will drop...the share price reflects the reset. If interest rates go up the share price will increase as well, as future resets will provide better yields.
They serve well as a portion of an income oriented retirement portfolio. As other myself & others have said...understand what you are buying....there's no free/risk free ride.

I personally think that interest rates will be much higher in the future...that will hit my Fortis shares hard nut will put a sail into my rate reset preferreds.

Oh...and don't get hung up on FTS.PR.H . It is only in this discussion because Agent and I brought up that preferred issue..Agent thought it was a bad mistake and I responded that I was buying that issue. Credit rating of the issuing company is paramont along with a few other quirks, We all have our investment goals...that is why there is a buyer for every seller.
 

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understood the caveat emptor.
future interest rates play significantly here - I get that part. utilities (EMA, FTA etc) don't do well when rates go up, so you gain on the rate-reset preferred side.
thx agent & eder.
 

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I don't see the part about higher interest rates benefiting this rate reset. Eder (& I) will be stuck with a low yield for 5 years. Then when it resets it will still be just 1.45% over the GOC-5 rate while others will likely higher. Both factors will keep price of the shares low and mean you have to keep them forever :)

I also own FTS.PR.J - a Perpetual. Paid $19.88. It pays 4.75% on par forever (unless called). Or about 6% on my cost. Share value will fluctuate with interest rates, but at 6%, I won't be selling. Overall portfolio is lucky to yield that much in my time horizon.

Perpetuals were pulled down along with everything else, but I see that they are climbing back up. I have had trouble buying at yields I would like.
 

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I had to pay more than I wanted, but bought additional EMA, AQN and BCE resets today. They yield in roughly 6-8% range until reset in 3-5yrs. After that they will reset at ~2.6 to 3.3% above GOC 5yr rate. Right now only 0.47%. Hopefully higher by reset time, but unlikely. Even if not, will have current yield of about 5% at reset..
Not expecting to make any gains on these. Share price could be volatile. But that is not a concern. They are just for cash flow in retirement.
 

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That's the reason to own them (in moderation).
Eder said:
I'm expecting capital gains, yield is for waiting. Fortis is less risky than others.
JMO...
Not for capital gains like FTS.PR.H ??? :)

By the way, those of who own FTS.PR.H have to decide soon on whether to keep them or convert to the FTS.PR.I floater. Lousy yield either way, Floater better IF we expect 90 day T-bill rate to increase over next 5 years.

I read this recently re Fed rate in USA: Between 2008 and 2015, the Fed kept the rate at zero. The recession ended in June 2009. In Canada, rates were increased briefly after 08/09, but dropped back again. It was not until 2017 that they started to rise.

So not expecting much of a change here in 5 years. Haven't decided yet whether or not to convert.

Hope my new acquisitions do better than that Fortis reset!
 

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Discussion Starter #118
Bought BIP:US today at 38.50 in my RRSP account. This was a carryover of the sale of DRG.UN where I had allocated some funds to BPY.UN and the remainder had sat waiting to be allocated. Not sure if and when we will see a second leg down but plan to hold long term. Still waiting for an opportunity to purchase CNR or a US RR.
 

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By the way, those of who own FTS.PR.H have to decide soon on whether to keep them or convert to the FTS.PR.I floater. Lousy yield either way,
Sold that FTS pfd today. My shares would have only yielded 3.22% on my cost (1.9% on par) after reset. Can do better than that! Glad to be out of it.
Replaced today with TRP.PR.J. Min reset with 5.5% minimum yield or BOC-5+4.69. Have to pay almost full price for these!
 

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I added a bit to ENB, GWO and MG. Not all-in though, as I am feeling like there could be another down week somewhere.
 
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