Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:RE:RE:This is for real right..

[RagingBull3]

Short Term, you will probably see small increase in Dividends across the market.   Cost of Debt hit Rock Bottom.   This low rate inviorment will give a short term boost to the entire market, but if rates continue to be low, this will drag down the earnings across the market.   Then Dividends/yields will decrease.   

That is why Debt prices have gone through the roof, bringing yields to near zero.   

All just my opinion.

RagingBull3 wrote: ummmm, I think you are incorrect on "never have dividend increases".   These are Reset Preferreds.  Every 5 years they reset.  If rates go up (we are sitting at "effective lower bound"), then Dividends go up.  

For the G's, you have to remember that they resetted at basically when rates were at "effective lower bound".... That's why the G's are trading where they are now.   The very LONGS playing the longterm rate trends.   Long term, basically the E's and G's are almost the same.  That's why the G's are priced the way they are.  

Long ago I posted this question/analysis comparing the G's and E's.   

You have to look at the Reset......or if you are playing very long term.... just evaluate based on FIXED RATE portion and forget about the floating 5 yr Bond yield rate portion as this is basically the same for most of the preferreds, the only real difference is the Fixed Rate Portion.

Husky4000 wrote: I sold some Gs today (25% of my holding), they are yielding only 6.75% at the moment.  I switched it to ENB commons for a 7.89% yield.  You have to consider that for the preferreds you will never have dividend increases, while I'm confident that a 5 to 7% increase yearly of the divi is possible in a stock like ENB.