Preferred Shares Archives - The Dividend Ninja

Recent Buy: Power Financial Corp. PF Series S

This morning I sold another chunk of my iShares bond ETF, CLF, and purchased 100 shares of Power Financial Corporation First Preferred Shares, Series S, at $25 per share. The current yield is 4.80%, just slightly higher than the common shares of PWF. The shares are rated Pfd-1 by DBRS, and P-1 by S&P, which are considered highest quality ratings. Preferred shares (PF Shares) from Canada’s biggest companies are rarely offered with TD Waterhouse, and these new issues are usually gone within 20 to 30 minutes. I have been planning for several months to start adding PF shares to my …

The Power of Preferred Shares

by Dividend Ninja

Preferred shares are often overlooked by dividend investors because of their lower growth rate as compared to common shares. Since they have a higher dividend yield, and preferred shareholders have rights to dividends over common shareholders, they certainly are worth looking into. The key point is preferred shareholders give up their voting rights in favour of a higher yield. In addition preferred shares are more complex than common stock, and have similar characteristics to corporate bonds that make purchasing them also more complex. However if you like high dividend yield with less market volatility, then preferred shares can make an …