TSX:TNT.UN - Post by User
Comment by
wheeloffortuneon Jun 19, 2023 6:43pm
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Post# 35504193
RE:RE:RE:I bought TNT and quickly sold it, moved to BPO preferreds
RE:RE:RE:I bought TNT and quickly sold it, moved to BPO preferredsFrom BPO's Website (BPO.PR.N) https://bpy.brookfield.com/bpo/preferred-shares/investment-calculator - I WOULD TRUST THEIR WEBSITE OVER ANY SECONDARY SITE AS BEING MORE ACCURATE.
It says the current yield is 4.81%, which means prime 4.75% + 0.06% (premium) - 4.81%
The 12 months return is -28.29% (which means they are factoring in the falling SP over 12 months).
Why is the SP falling? Probably because the premium is too low.
How do you get 17%??
Dividend Yield
- Current Dividend Yield
- 4.81%
- 12 Months Dividend Yield
- 9.61%
Total Return
- Current Year Return
- -14.74%
- 12 Months Return
- -28.29%
| YTD | 3.60 | -18.34 | -14.74 |
| 10 Months | 5.27 | -35.12 | -29.85 |
| 1 Year | 5.38 | -33.67 | -28.29 |
| 5 Years | 19.67 | -49.32 | -29.65 |
CrazyTrader wrote: Just as with TNT, you look at the share price today, the yield is ~12% on TNT. If you want to look backwards, then what did TNT 12 month return -50%???
You are not buying 12 months ago, you are buying now.
BPO preferreds yielding about 10%. Now remember, these are Preferreds, the dividend more "secure". Now remember, that most of these preferreds that are yielding 10% are doing so at a set rate of when interest rates were at ROCK bottom. Fast forward a year, interest rates have gone through the roof. When these preferreds reset, some of them will reset at much much higher rates, sending the yield to the Moon.
As I said, I'm earning over 10% yield.... and expecting it go to 17%+ when they reset.
One of them I'll earn a MINIMUM yield of 10%+ FOREVER. so long as a dividend is paid.
All just my opinion/view/thinking