TSX:HSE.PR.B - Post by User
Comment by
Husky4000on Sep 26, 2020 2:04pm
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Post# 31625504
RE:RE:RE:Getting Ready to Buy more Preferreds... ~10% Yields !!!
RE:RE:RE:Getting Ready to Buy more Preferreds... ~10% Yields !!!Preferreds are not a 'higher class of commons'. They don't carry voting rights, as commons do. They are like a hybrid between bonds and commons. They are illiquid and trade like bonds. Upside is 'limited' and depend on interest rates.
Preferred get priority in case of bankruptcy. In a sense, they are less risky.
I don't understant the debate, as commons and preferreds are different products and I own both.
Husky is not going bankrupt, they have a good credit rating and I wouldn't worry a second about their ability to pay the dividend or the quote from the market. This is a pretty safe investment and I see them doubling eventually.
As for the commons, they are more risky but can triple, quadruple or even more.
As I said, I don't understand the debate, it's like comparing apples to oranges.