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Research Department

February-02-15

Preferred Shares: Not worth the risk in non-taxable accounts

I collaborated with my colleague Ben Felix on Preferred Shares, whether they are worth the risk in non-taxable accounts.

Investors looking for yield in a low-interest rate environment will often turn to preferred shares. Preferred shares can be a good tool for taxable investors due to the Canadian Dividend Tax Credit, but for non-taxable investors they are significantly less attractive. In situations where tax efficiency is not a benefit, preferred shares pose risks that are not worth taking. 

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By: Raymond Kerzérho | 0 comments