As mentioned in the June 1 Market Action Report, I recently was forwarded a copy about a complaint regarding the dividend amount for BCE.PR.B:
Assiduous Reader TS sends me a copy of an eMail he sent to BCE:
Dear Sir or Madame,
I believe that the dividend on BCE.PR.B and similar prime rate preferred shares for record date May 31, 2022 were calculated incorrectly.
On the website it states that the dividend is $0.06215
The prime rate for the entire month of May was 3.2% so $25 x 3.2% / 12 mths = $0.06667
You still have time to change that as payment date is Jun 13, 2022.
Please correct as soon as possible.
Thank you.
Today, the dividend page for BCE.PR.B has been revised to show a dividend payable June 13 for 0.06667 and I was forwarded a copy of BCE’s response:
Good morning!
Indeed, you are correct and we had caught it just in time to have it corrected with the various instances when you wrote to us.
Really appreciate you taking the time to let us know.
Sincerely,
Well done, TS! It always pays to check things and pays even better to make polite inquiries when something seems strange!
James:
ECN.PR.C
Another reset for the next 5-year cycle:
https://money.tmx.com/en/quote/ECN/news/8170623154836566/ECN_Capital_Provides_Notice_of_Series_C_Preferred_Shares_Conversion_Right_and_Announces_Reset_Dividend_Rates
Cheers!
Nearly 8% dividend. Wow.
ECN.PR.C is a “minimum” rate reset, and these typically get a decent premium because of that feature!
I was actually surprised that ECN opted to extend the C series … because they redeemed their only other pref (the A series reset) last December. That one was also a minimum reset with a 544 spread … but, of course, the GOC5 was a lot lower last December.