{"id":17764,"date":"2011-11-11T00:58:57","date_gmt":"2011-11-11T04:58:57","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17764"},"modified":"2011-11-11T00:58:57","modified_gmt":"2011-11-11T04:58:57","slug":"are-preferred-shares-a-good-buy","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17764","title":{"rendered":"Are Preferred Shares A Good Buy?"},"content":{"rendered":"<p>David Aston was kind enough to quote me in his Moneysense piece <a href=\"http:\/\/www.moneysense.ca\/2011\/11\/25\/are-preferred-shares-a-good-buy\/\">Are preferred shares a good buy?<\/a>:<\/p>\n<blockquote><p>Third, before taxes, the yields on preferred shares tend to be pretty similar to those of long-term bonds for the same company, says preferred shares expert James Hymas, president of Hymas Investment Management in Toronto. Even though they\u2019re not as reliable as the company\u2019s bonds, they give you about the same before-tax yield. So if you\u2019re investing inside a TFSA or RRSP where taxes don\u2019t matter, go with the bonds.<\/p>\n<p>Fourth\u2014and this is their key advantage\u2014the dividends on Canadian preferred shares get the same highly advantageous tax treatment as dividends on Canadian common shares. So they generally beat bonds hands-down when held in non-registered accounts, where taxes matter. In fact, as a rule of thumb, a bond has to generate about 1.3 times the before-tax yield in order to end up with the same after-tax income compared to a preferred share, says Hymas.<\/p><\/blockquote>\n<p>[This post was written 2012-2-6, but backdated to the Moneysense publication date, 2011-11-25)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David Aston was kind enough to quote me in his Moneysense piece Are preferred shares a good buy?: Third, before taxes, the yields on preferred shares tend to be pretty similar to those of long-term &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-17764","post","type-post","status-publish","format-standard","hentry","category-press-clippings"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17764"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17764\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}