RE:BK.PR.A on sale?The dividend rate is
1.5% over the prime rate, but with a
maximum rate of 8% and a
minimum rate of 5%. The 8% rate is not guaranteed and is only achieved while the prime rate stays at or above 6.5%. Currently, the prime rate is 7.2%, so if the BOC cuts rates sufficiently, you will no longer be receiving 8%.
While I bought some this morning, BK preferreds are not my favourite. I purchased only for a trade.
sandino wrote: This stock will continue to yield 8% per year so why not buy at todays discount price? I just bought another 1000 @ 9.78. The NAV for the preferred+class A is ~$18, the best in the quadravest portfolio so will continue to pay out for many, many years to come.