Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

Dividend of $1.17/yr for next 5 years for HSE.PR.C

[RagingBull3]

That's $1.17x5= $5.86 in Dividends.   Stocks trading at $9.12?    

After 5 years, even if interest rates go to zero and this thing resets, it'll probably yield 10% if share price still at this level because it still has the fix rate portion.

What am I missing???!!!!   You would think it's a screaming buy.

[RagingBull3]

Dividend is actually more than $1.17/yr slightly, That's why it's $5.86 and not $5.85.

[RagingBull3]

Sorry, getting the "C" and "G" mixed up.     C dividend $1.17/yr for next 5 years.   C share price now $9.31  and if after 5 years rates goes to zero on 5 year bond and share price still $9.31, C would still yield about 8% i believe from the fixed rate portion.

[Nakate]

really does sound fantastic, one of those if its to good be true then its probably a scam things. Maybe I'll take a deeper look into the prospectus

[Nakate]

Had a deeper look but not sure what the market is thinking, on the face they look cheap, the market say this is high risk but what is that risk when they get turn into shares with a better returns. It a call option on the share price that pays a nice divi but has most of the risk of the common if the worst happens. The divi is more secure. is it worth the premium to the share price at these prices

[RagingBull3]

Hi Nakate, thanks for your input.    I don't think these are convertibles shares, they can only be redeemed for $25 I think.   These are more like bonds with "defined" dividends. It makes some sense that they are corrolated with the commons while at the same time NOT. If the commons are yielding the same or more, why would you buy the Preferreds, right? But the

[RagingBull3]

Yes, I'm trying to find out what I'm missing.   How I could I be scammed.   The market is usually right.     I just don't know they are seeing.      It's not just HSE, it's the same for all these types of shares across the entire market I think. If you think the Commons are viable, then the Preferreds are viable. If they are viable, who