TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Sep 07, 2023 2:13pm
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Post# 35624570
RE:The C's has a BASE Rate of 5.18% !! Add the 5 Yr Rate To It
RE:The C's has a BASE Rate of 5.18% !! Add the 5 Yr Rate To It
"... you're looking at it costing the company maybe 10%+ next reset..."
That reset is three years from now.
While the current "Canada 5 year" rate is 3.9%, I expect it will drop to 3% or less by mid 2026.
If the current 3.9% remains the same in three years, the dividend would increase to (5.18% + 3.9%) or about 9% payable by BPO on par value of $25 ($2.25 annually).
Personally I prefer to stick to the preferred "T" scheduled for reset on December 1st this year (less than three months away) and get an almost immediate increase in my dividend ($1.77 up from $1.35).