TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Feb 28, 2024 4:36pm
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Post# 35904906
RE:"Look" Carena.... by all your accounts Brookfield will not
RE:"Look" Carena.... by all your accounts Brookfield will notCrazyTrader wrote "by all your accounts Brookfield will not default on BPO prefers."
That is correct. The risks of default or bankruptcy are relatively small.
However, there is always the risk of quarterly dividends not being paid on BPO preferred shares if the company - at some future time - determines that such payments would put them in contravention of paragraph 42(a) or 42(b) of the Canada Business Corporations Act ("CBCA").
That possibility has been discussed several months ago.
While BPO dividends of preferred are "cumulative", experience dictates that the share prices would drop like a stone if such declaration is made.
I think BPO preferred shares will be OK but.... there are risks. That explains why the yield is much higher on BPO than preferred shares with lesser risks.
You were right two weeks ago when you wrote "ok, going back to silent mode. BPO did well when I was silent. LOL".
Just sit back and enjoy the dividends.