Pembina Pipeline Corp PPLAF

Wake Up Time

[TheBridge]

PPL has been dragging its feet for a fairly long time now getting into the $50 range as predicted by a number of analyists. IMO, I believe the share price by now should at least be somewhere above $45. I think it's time that it might be helpful if a large suppository was inserted into the pipeline to improve oil flow and profits, and while they're at it they might as well service the current management team with their own suppositories.

[mrbb]

my thought is high GIC rate have  lured many pensioners and dividend shareholders to switch out of utility stocks and into 'safer' GIC.  When recession hit home and fed start cutting rates, i can see some recovery for dividend stocks.  Consider this period as accumulating period.  PPL changing to quarterly divy payment from monthly not helping either. 

[autofocus111]

I've been sticking CAD$ into a TD HISA and USD$ into SGOV. Today bought Pembina preferred shares PPL.PF.A.TO for a YOC of ~8.3% good for the next 4 years and a minimum guaranteed yield of ~6.4% at the next reset.

[FatherJack]

How do you get the minimum 6.4% after the next reset?  There is no minimum dividend on this series, only 2.47% plus the 5 year bond rate.

[autofocus111]

The info you listed is for PPL.PR.A (series 1). I bought PPL.PF.A.TO (Series 21)  which is fixed rate (CGOV5YR+3.26%) and a minimum floor of 4.90% on par at every reset. The last reset on this one was back in March to yield 6.302% at par, good until Mar1 2028. It is currently trading at ~19 so do the math. See relevant info from the prospectus... >>>The Annual Fixed Dividend Rate

[FatherJack]

Thanks for the info. Always nice to get factual information.

[autofocus111]

Honestly, this is the first time I've ever purchased preferred shares, so I hope I got it right :) I've considered preferreds in the past, and have read some prospectuses, but did not see any big advantagea of the ones I did look at, It's alot of work too given the large number of issuances involved, compared to just buying common shares and getting decent yields, at least when the