Post by
mouserman on Apr 01, 2023 9:39am
Did a quick survey of other split funds.
While some of the others have a small imbalance between commons and preferreds, none have the issue that FFN has. FTN actually has more preferred shares in circulation than commons, one of the few. FTN.pr.a also trades under the $10 value level. BK also has nearly 700k more preferreds than commons. I checked out Brompton and they have very close , and sometimes the exact number of shares in commons and preferreds for the most part.
BK recently did an offering, (January 2023) and its a bit strange that the preferred total has jumped , altho that may have been recently when the banks interest rate hike contagion happened, and more were inclined to sell the commons and not the entire UNITS.
BK also raised the distribution rate again in January concurrent with the offering. BK 's preferred rate policy is driven by interest rates and is pegged @ prime + 1.50 %.
In less than a year BK preferreds distribution payout has risen to 6.667 from 4.167 cents per share due to the agressive hiking of interest rates, a 60% rise in distribution rate...
Comment by
primo105 on Apr 01, 2023 3:15pm
When interest rates go down will the FFN preferred dividend go down? It doesn't appear the dividend has ever decreased.