Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1I've started to buy the series 3 pref recently. i don't know if this is as commonly known but this is the highest yielding variable preffered dividend on the TSX
The Series 3 pref dividend is based on par value ($25) x (4.1% spread + the 3 month T-bill). The three month t-bill is 2.6% today and going up with every interest rate increase which is expected to be 3.3% on the low end.
That makes the overal dividend to 6.7%-7.5% on the $25 par = $1.7-1.87 annual dividend. Based on today's price of $18.5 this is equal to 9-10% actual dividend on the purchase price.
With Dundee Corp not holding any corporate debt, a large cash balance and public securities I think this makes the prefs very attractive.
Today I think the series 3 pref is a much better investment than the series 2 who pays a 7% dividend on today's prices. There is also a free option to switch in 2024 from the series 3 (DC.PR.D) to the series 2 (DC.PR.B) once the series 2 dividend gets reset (based on the 5 year goc + 4.1%).
Not a bad place to park money in an uncertain market in my opinion. let me know what you think!