On Tuesday, the S&P 500 ended the day up 0.3% and Toronto was up 0.5%
The two Brookfield Office Properties preferred shares were up another 6.3% and 3.3%. BPO.PR.A has a 52 week range of $7.06 to $16.09 and closed today at $10.63. That’s some wild volatility on a security that should normally be considered relatively safe.
After the close, CN rail reported Q4 earnings which although modestly lower than last year (adjusted earnings per share) were better than expected. The dividend is being increased 7%. CN has been an enormous winner over the long term. (It’s good to be in a duopoly position in Canada.)
I notice CWB.PR.D is up to $24.93. I believe today was the last day to buy it and receive the next 37.5 cents dividend which will be paid on January 31 to shareholders of record as of tomorrow January 24. (If you buy tomorrow you will not be a shareholder of record until at least the next day).
CWB will have the right to redeem these shares on April 30 at $25 and I believe they will do that because of the high dividend.
It will be interesting to see if they drop about 37 cents tomorrow to about $24.57. At that price I think they would definitely be a buy. Even at about $25 tomorrow they would not be a bad investment given one more 37.5 cent dividend around April 30 and a probable redemption at $25. And if not redeemed the yield is likely to be very attractive.
CWB also has the CWB.PR.B outstanding. I definitely do not expect those to be redeemed on April 30 and neither does the market expect it. See the Subscriber Home Page for more details on both of these.