Canadian Large Cap Leaders Split Corp T.NPS

Preferred Shares

[BeyondValuez]

The current NAV on the NPS preferred shares is $10. This is also considered a P3 in safety, which is low.

Currenly trading at $10.39 which is a premium to NAV, makes no sense to buy these at a premium especially with its low rating.

[Intellectual]

The current premium is not out of line with other preferred shares that are also trading well above par. LBS.PR.A, ENS.PR.A, FTN.PR.A, etc. have all been hovering around $10.30 or even above. PDV.PR.A, another very llliquid stock, closed at $10.43 on Friday. These are all technically overvlaued, but buyers are still able to make money over time simply because of their attractive dividend yields