Opinions
Randy LeClair
Brookfield Renewable Power Pref
BRF.PR.E-T
TOP PICK
Sep 30, 2013
Stock price when the opinion was issued
You might be interested:
Preferreds E. In the last 6 months, we have seen longer yields in Canada go up by almost 1%. He thinks we are only halfway done and he thinks this will get a little bit weaker. This one is a P3 rated issue, which means Junk. A BB, noninvestment grade credit. This one gives you all the downside with a capped upside. For an income oriented investor, this is not a name, he would own.
Likes the underlying company. Has a fairly high quality portfolio, predominantly of renewable energy projects. They have a relationship with Brookfield Asset Management (BAM.A-T). The benefit is that as they raise funds, this company has the ability to partner with them and take smaller equity pieces in these projects. Outlook looks good.
Preferreds E, 5% Series 5. Hydro plants, wind power, etc. Nice coupon of 5%. Callable in 2018 at $26 and then goes down by $0.25 each year until 2022. Current yield of about 6.35% dividend yield.