Dundee Corp T.DC.P.B

Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1

[valueinvestor89]

I've started to buy the series 3 pref recently. i don't know if this is as commonly known but this is the highest yielding variable preffered dividend on the TSX

The Series 3 pref dividend is based on par value ($25) x (4.1% spread + the 3 month T-bill). The three month t-bill is 2.6% today and going up with every interest rate increase which is expected to be 3.3% on the low end. 

That makes the overal dividend to 6.7%-7.5% on the $25 par = $1.7-1.87 annual dividend. Based on today's price of $18.5 this is equal to 9-10% actual dividend on the purchase price. 

With Dundee Corp not holding any corporate debt, a large cash balance and public securities I think this makes the prefs very attractive. 

Today I think the series 3 pref is a much better investment than the series 2 who pays a 7% dividend on today's prices. There is also a free option to switch in 2024 from the series 3 (DC.PR.D) to the series 2 (DC.PR.B) once the series 2 dividend gets reset (based on the 5 year goc + 4.1%). 

Not a bad place to park money in an uncertain market in my opinion. let me know what you think!

[Macpoor]

I love to see  managment  cut the  dividend for series 2 and 3 by at least 15 percent. That cut will bring up the DC.A to $2.00 Just do it so this peeg move higher))))))))))))))))))))))))))))

[pierrelebel]

The dividend cannot be cut.  Period. Best DC could do is buy back the preferred shares (both B and D), reducing the total amount of dividends they would pay.

[valueinvestor89]

Agreed the dividend unlike the common shares of most companies is not discretionary.  With the September  interest rate hike of the expected 50-75bps this will be yielding 10% while trading at a 25% discount to par. good way to ride interest rates and inflation while parking some cash in my opinion.   Wrt to the common shares and results this month I'll be interested

[Macpoor]

That sucks!