RE:RE:RE:RE:!!!!,,,,,DOWN 2.5%%% on Ex Dividend Date........!!!!!!!!Agreed autofocus....it is far better to buy a preferred with a fixed coupon in a potentially declining interest rate environment. In this scenario, if interest rates do go down, then the SP of the preferred will go up and thereby increase your total return.
In this vein, a I recently bought some ENB.PR.H and currently enjoying a 9% dividend yield on my cost base and a decent (unrealized) capital gain. I expect interest rates in Canada to decline next year as the US Fed has recently signalled the possibility of three rate cuts there next year. This raises the expectation of further capital gains as the SP goes up with lower interest rates and a locked in 9% yield. IMO this is a low risk way to make a pretty decent return.