TSX:BPO.PR.A - Post by User
Post by
CrazyTraderon Oct 27, 2023 5:12pm
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Post# 35705048
Why????? N's vs T's
Why????? N's vs T'sN's share price $6.25 with current yield of 16.03% resets July 26 with yield 32.28% if 5yr rate 5%.
T's share price $10.05 with current yield of 13.39% reset end of year with yield 20.30% if 5yr rate 5%.
So from now to when the N's reset, the T's yield will be 20.30% vs N's 16.03% for 2.5 years.
Difference = 20.30 - 16.03 = 4.27%. So the T's will collect 4.27% more dividends over the N's for 2.5 years.
Extra Dividend = $25x0.0427x2.5 = $2.76 over above dividend on the N's
Share price diffence = $10.05 - $6.25 = $3.80
Difference factoring out Dividend Difference = $3.80 - $2.76 = $1.04.
After 2.5 yrs, the dividend for the N's most likely rocket up. 5yr rate would have to drop to 2% for the N's to yield 20.28% basically equal to the T's.
Anything more than 2% for the 5yr you gain over the T's in dividend FOREVER.
I think the N's are a better deal. That's if you buy and hold forever and not trade. But Like Pierre said, you don't have to hold the T's forever. T's most likely will move higher short term, then you can sell and buy another.
All just my opinion/view/thinking.