The Panic-Proof Portfolio (Stockchase Research) PWF Preferred Shares 5.5% Perpetual PWF.PR.E-T TOP PICK Jun 06, 2024

The parent company, POW, generates $6.6 billion in free cash flow and trades at only 1.1x book value.  This preferred share pays a perpetual quarterly dividend that has a great yield and high (Pfd-2H) credit rating.  Rising interest rates have reduced the preferred share value to a discount of its $25 par value; however, when interest rates return to long term levels this can provide possible upside potential of 19%.  We recommend placing a stop-loss at $17.50.  Yield 6.5%   

As the Canadian Central Bank suggests no further interest rates are likely necessary to curtail inflation, we reiterate preferred shares as a TOP PICK.  The parent, Power Corp., holds an international diversified portfolio of financial assets and services.  We continue to recommend a stop-loss at $17.50, looking to achieve $25 -- upside potential over 23%.  Yield 6.8%

With the Canadian Central Bank hinting that further interest rate increase are unlikely going forward as inflation abates, we again reiterate PWF.PR.E as a TOP PICK.  The parent corporation, POW, trades at 15x earnings and 1.2x book value. Quarterly cash reserves of the parent are growing, as debt is retired and shares bought back. We recommend trailing up the stop (from $17.50) to $19.00, looking to achieve $25.00 -- upside potential of 19%.  Yield 6.1%

We reiterate this Canadian based preferred share offering by Power Financial.  The parent company POW recently reported EPS increasing by 138%.  Cash reserves at the parent are growing, while debt is retired and shares bought back and their stock trades at 10x earnings and 2x book value.  We continue to recommend a stop at $19, looking to achieve $25 -- upside potential of 16%.  Yield 6.4%