Preferred Shares are hybrid securities that trade like equities, but feature fixed income characteristics. Much like common shares, grants a shareholder an ownership interest in the issuer, while paying a steady stream of interest, much like a bond. However, unlike a bond, the preferred stock generally does not have a maturity date. Preferred shares generally also do not hold voting rights due to their higher than normal yield.
We currently offer access to all the main types of preferred shares available in Canada. These are:
Perpetual preferred shares- a preferred share that has no maturity date and pays a fixed dividend during its life span.
Floating rate preferred shares- a preferred share that pays a dividend that fluctuates in relation to a reference rate; most "floaters" generally have a minimum dividend level.
Rate reset preferred shares- a preferred share that pays a fixed between each reset date. Upon the reset date, the shareholder has the option to enter a fixed rate preferred until the next reset date, or exchange the shares for floating rate preferred shares.
Retractable preferred shares- a preferred share that allows the holder to redeem the share at par value on a specific date.
Please contact us for more information on preferred shares and how they fit into a diversified portfolio.