Today is the day that we finally begin to put the elections to bed–of course we know it will drag out a few days beyond today.
As some have mentioned this is mostly just ‘noise’–which I believe to be the case. The election will end and we will go about our business. There is nothing I will do different right now as far as investing–down the road maybe, but for now nothing at all.
Just a friendly reminder that politics is generally off limits on the website. I have noticed some minor commenting, but nothing to get excited about. I will be watching comments, but am not going to go overboard on an occasional very brief mention of the results etc.
Users who liked this:
I’m in a battle ground state and haven’t received a political email nor a text message all day!!!!!!!!
What would be accomplished by sending a message today?
Phishing attacks. Still getting a few texts asking for me to congratulate the winners or donate to cover costs. Wanting me to click on the button and respond.
Boy, will I be glad when the election is over and the political ads end! I live in one of the battleground states and it has been unceasing. No matter who wins this election I see there will be opportunities and also some losers. Our challenge as investors in debt equities such as preferreds, notes, and bonds is to pick the winners to invest in and sell the losers before they become the real losers. A possible scenario as an example…. If Mr. Trump wins and manages to enact all of his tariffs there may be a building boom going on for years as new manufacturing facilities are built to replace all the imported things. The money to build these has to come from somewhere and there could be some really juicy debt equities available for us to invest in. I just have to figure out how the election results affects my investing strategy.
Tim have you or anyone else ever looked into the BCE (formerly Bell Canada) OTC preferred offerings? One is fixed and the other floats, with the floater yielding around 9.6% and pays monthly. BCE is rated BBB.
I took a look. The ratio of FCF to preferred divi’s is pretty good but the company is paying out all of its FCF in common dividends and the common is selling at a yield of almost 10% after a decline of 30-40%. At a yield that high, isn’t the market expecting a cut in dividends? I am going to wait for that cut which will knock down the preferred even lower? Hard to find the floating terms ?
They mentioned holding common dividends flat along with recent news of the Ziply fiber aquisition which was dilutive to the common via drip. What is odd is that the floating rate E issue yields 9.6% vs 5.8% for the F issue fixed.
The other thing I don’t understand is why the preferred shares trade so low to par at $11.68 (par being 18.25 after converting from CAD).
I had to ask IR for the prospectus, which they promptly sent and can be found here:
BCE_PE.TO Stock Price, Quotes, Charts, Price History & Splits/Events | BCE Inc.
I clearly own the floating rate E shares however they show up in Schwab as BECEF which further adds to the confusion!
Dan–I never have but no doubt someone here has looked at them–maybe I should.
Tim, Have you looked at CWEN.A?
Remember the ending song from the movie Poseidon Adventure? Who will sing the Morning After tomorrow? A duet of Lee Greenwood and Lady Gaga?
I’m sure we will all want to know how it turns out…get your news here.