Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum Canadian Western Bank T.CWB

Alternate Symbol(s):  CBWBF | CWESF | T.CWB.PR.B | T.CWB.PR.D

Canadian Western Bank is a diversified financial services company. It provides full-service business and personal banking, specialized financing, comprehensive wealth management offerings, and trust services. It offers specialty business banking services for small-and medium-sized companies with a focus on general commercial, equipment financing, construction financing, commercial real estate... see more

TSX:CWB - Post Discussion

Canadian Western Bank > Buy CWB.PR.B
View:
Post by tylerreddick on Jun 17, 2024 7:59am

Buy CWB.PR.B

CWB will redeem the preferred shares at par, $25 per share.
So buying them today will give an 8% capital gain in a few months, plus whatever dividends are paid out until then.
Not a bad return for a totally risk-free investment.
Comment by Puma1back on Jun 17, 2024 9:22am
  has that detail been confirmed in the details of the purchase agreement? If so, that is a neat idea! caution though, should the actual issuer (CWB) redeem the shares you need to sell them the day before otherwise the proceeds would be treated as a taxable $25 dividend per share with the taxes rolling off that type of income.   
Comment by tylerreddick on Jun 17, 2024 9:32am
Not sure you are correct on the payment being a dividend. If they are redeemed, that would be a capital gain.
Comment by tylerreddick on Jun 17, 2024 9:34am
But no, the details won't be out before they issue the management information circular on the deal. The only risk is that the deal doesn't go through, and buyers would be "stuck" with a 6.9% tax-advantaged yield on the preferred.
Comment by tylerreddick on Jun 17, 2024 2:13pm
The capital gain would be almost $2, with another $1.20 in dividends, for a total gain of over 13% in 6 months, 26%/annum. There really aren't too many risk-free investments out there with that level of return
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities