FTN.PR.A To Reset To 7.50%

Quadravest has announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce the Preferred Share dividend rate for the fiscal year beginning December 1, 2022. Based on current market rates for preferred shares with similar terms, monthly payments to FTN.PR.A will be $0.06250 per share for an annual yield of 7.50% on their $10 redemption value. This is an increase of three quarters of one percent over the current rate.

I must say, I am growing to dislike these annual resets intensely. The minimum rate on these resets is only 5.5% and apart from this the company has full discretion. A prudent analysis must therefore assume that next year the rate will reset to 5.5% but there is every possibility, of course, that it will not. So refusing to buy these things might result in leaving money on the table. All in all, though, assuming the worst is always the way to go in securities analysis!

Thanks to Assiduous Reader RAV4guy for bringing this to my attention!

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