Post by
DemDem on Aug 19, 2024 10:44am
BPO.PR.X
Hello, could someone explain to me how the BPO.PR.X series and its ilk work? They say 70%, but 70% of what. The renewal is in December 2024, the action is low, the dividends very good, but is it worth the effort? I already have c,i and t. Please enlighten me. P.S.: I have not found anything enlightening in this sense on the forum.
Comment by
pierrelebel on Aug 19, 2024 10:53am
The dividend is based on 70% of the bank prime rate. As the bank prime rate goes down, so does the dividend. For more information, take a look at this LINK
Comment by
pierrelebel on Aug 19, 2024 10:56am
For more information, check the prospectus: https://bpy.brookfield.com/sites/brookfield-ir/files/brookfield/bpo/preferred-shares/preferred-shares-11.pdf
Comment by
wynner on Aug 19, 2024 10:54am
Hi DemDem. 70% of Bank of Canada Prime rate. Based on a $25 price of the pref. The cuts have not filtered down to the 13+% yield for this quarter. Next time. But still around the 13 mark . Next year more like 12.%% at this price. I own. Also BPO.W and BYPN and BYPO now.
Comment by
SONOFFERGUS on Aug 19, 2024 1:20pm
Hey DemDem. FWIW, I have posted extensively on my appreciation for these floaters -- they trade at a significant (30%-ish) discount to identical issues of better credits, which in turn trade at a massive (50%-ish) discount to par (and to rational pricing IMHO). Wynner and Carena are other owners I'm aware of. Take a look at my posts and come back if you have questions.