Preferred shares have been all-stars in the past year. Now, what?

Many thanks to Rob Carrick for quoting me in his latest piece, Preferred shares have been all-stars in the past year. Now, what?:

Prefs still offer something for the income-hungry investor, said James Hymas, president of Hymas Investment Management Inc. The dividend yield on the S&P/TSX preferred share index is about 4.5 per cent, compared to a yield of 0.8 per cent from the five-year Government of Canada bond.

Mr. Hymas urges investors to collect their dividends and learn to live with price fluctuations like we’ve seen in the past two years.

“One thing with preferred shares is that you have very little institutional presence, and it’s institutions that generally keep the markets on track,” he said. “Extreme price volatility is simply part of the retail market.”

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