There are generally two types of stock issued by a company: common and preferred. Preferred stocks typically have no voting rights (unless a specified number of dividend payments have been missed). Instead, preferred shares are entitled to a fixed dividend payment. In the event of company bankruptcy, preferred shareholders have a higher priority claim on company assets than common shareholders.
Dividends on preferred shares must be paid out before dividends to common shareholders. Sometimes preferred dividend payments are cumulative—all preferred dividends in arrears must be paid out before common dividends are resumed in a troubled company. But sometimes preferreds are non-cumulative.
There are ETFs that hold preferred shares. For example, the BMO S&P/TSX Laddered Preferred Share Index ETF, symbol ZPR on the Toronto stock exchange, holds floating-rate preferred shares that pays dividends that fluctuate with changes in interest rates. The dividend rate may range from 50% to 100% of (usually) the prime bank rate. As interest rates rise, so do floating-preferred dividend yields.
Sometimes the floating-rate feature only kicks in several years after the issuer sells the preferreds to investors. For example, the preferreds may pay dividends at a fixed rate for five years, and then the payout floats with interest rates.
High-quality preferred shares are okay to hold in your portfolio, although we think that the best common shares can offer both high yields and growth prospects. All in all, we think you should follow TSI Network and use our three-part Successful Investor strategy:
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A dominant market position, consistent revenue growth, and strategic investments in AI and acquisitions position Thomson Reuters for continued success. While the stock trades at a premium valuation of 43.9 times forward earnings, this reflects the company’s quality and growth potential.
A potent combination of steady… Read More
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NEWSMAX INC. has filed paperwork with U.S. regulators for an initial public offering (IPO) of common shares. The shares will trade on New York under the symbol NMAX.
Based in Florida, the company operates a conservative-focused cable TV news channel, as well as online portals. Broadcasting supplies… Read More
TD 1ST PREFERRED CLASS A SERIES 1 $24.54 (Toronto symbol TD.PF.A) is a preferred share issue from TD Bank (Toronto symbol TD).
The TD Series 1 Preferred yields 3.8%. That’s lower than the 5.1% offered by the bank’s common shares.
Note, though, that preferred shares behave more like long-term… Read More
C3.AI Inc., $27.73, symbol AI on New York, makes software for corporations to speed up their deployment of artificial intelligence (AI) applications.
The company was founded in 2009 by Thomas Siebel. Prior to founding C3.ai, he created Siebel Systems in 1993. That firm was a pioneer… Read More
Ignore the “bells and whistles” when it comes to making investment decisions and instead stick to simple investing
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TRANSDIGM GROUP INC., $957.63, symbol TDG on New York, engages in the design, production, and supply of highly engineered exclusive components for use in commercial and military aircraft worldwide. Its products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, and specialized pumps and… Read More
Starting 2018, Thomson Reuters has worked to wind down its financial information business and use the proceeds to reward investors. Thanks to that strategy, its stock has soared 200% in the past five years. We feel Thomson can still go higher as it shifts its… Read More
TD 1ST PREFERRED CLASS A SERIES 1 $17 (Toronto symbol TD.PF.A) is a preferred-share issue from TD Bank (symbol TD on Toronto).
The TD Series 1 preferreds yield 5.3%. That’s higher than the 4.5% offered by the bank’s common shares.
Note, though, that preferred shares behave more like long-term,… Read More
Learn everything you need to know in 'How to Find the Best Growth Stocks' FREE Special Report from The Successful Investor.
Canadian Growth Stocks:
CGI Group, CAE Inc., Fortis Inc. Stock and more.
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
Automatic Information: We receive and store certain types of information whenever you interact with us. For example, like many websites, we use "cookies," and we obtain certain types of information when your web browser accesses TSI Network.
Information from Other Sources: For reasons such as improving personalization of our service (for example, providing better product recommendations or special offers that we think will interest you), we might receive information about you from other sources and add it to our account information. We also sometimes receive updated delivery and address information from our shippers or other sources so that we can correct our records and deliver your next purchase or communication more easily.
We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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TSI Network may provide personal and other information to a purchaser or successor entity in connection with the sale of TSI Network, a subsidiary or line of business associated with TSI Network, or substantially all of the assets of TSI Network or one of its subsidiaries, affiliates or lines of business.
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Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.
We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
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TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
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TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: service@tsinetwork.ca.
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If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
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What Choices Do I Have?
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
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