The Panic-Proof Portfolio (Stockchase Research) SLF Preferred Shares 4.45% Perpetual SLF.PR.D-T TOP PICK May 23, 2024

SLF is a well-diversified life and wealth management company, which generates over $4.3 billion in free cash flow.  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 to its $25 par value; however, when interest rates return to long term levels this can provide possible upside potential of 35%.  We recommend placing a stop-loss at $15.50.  Yield 6.0%     

We reiterate SLF.PR.D as a TOP PICK.  SLF is a well-diversified life and wealth management company, which generates over $4.3 billion in free cash flow.  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 to its $25 par value; however, as interest rates stall and eventually return lower to long term levels this can provide possible upside potential over 30%.  We recommend maintaining the stop at $15.50.  Yield 6.0%

We reiterate this well-diversified life and wealth management company, which generates over $4.3 billion in free cash flow, as a TOP PICK.  This preferred share pays a perpetual quarterly dividend that has a great yield and high (Pfd-2H) credit rating.  We recommend maintaining the stop at $15.50, looking to achieve $25 — upside potential over 30%.  Yield 5.9%

As the Canadian central bank has begun to reduce interest rates, preferred shares should benefit.  We reiterate SLF.PR.D as a TOP PICK.  The parent corporation has been prudently using some cash reserves to retire debt and buy back shares.  The parent trades at 13x earnings, 1.7x book value, and supports a 13% ROE.  We recommend maintaining the the stop at $17.00, looking to achieve $25.00 -- upside potential of 30%.  Yield 5.8%

Canadian preferred shares still hold great upside value opportunities and pay a great dividend.  We reiterate this well-diversified life and wealth management company, which generates over $4.3 billion in free cash flow, as a TOP PICK.  This preferred share pays a perpetual quarterly dividend that has a great yield and high (Pfd-2H) credit rating.  We continue to recommend maintaining a stop at $15.50, looking to achieve $25 -- upside potential of 25%.  Yield 5.5%  

In times of uncertainty, holding high-quality dividend paying preferred shares is a good strategy.  We reiterate SLF as a TOP PICK as it is a well diversified insurance and wealth management company  in a safe market space.  We recommend trailing up the stop (from $15.50) to $18.00, looking to achieve $25 — upside potential of 20%.  Yield 5.3%