Buy, Sell or Hold: BMO S&P/TSX Laddered Preferred (ZPR-T)

Home Daily Stock Opinions and Ratings BMO S&P/TSX Laddered Preferred (ZPR-T)

TSE:ZPR

9.56

0.07 (0.74%) 1d

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O’Reilly A Canadian preferred share ETF that is laddered up to five years managed by BMO. This includes rate resets that benefit from rising interest rates. It has a low MER of 0.5% and an attractive yield. Preferred shares have generally been under pressure as interest rates have gone up, so this is a good entry point. We recommend setting a stop loss at $8.40, looking to achieve $10.75 – upside potential of 13%.

E.T.F.'s

BUY

Has short duration preferred shares. Also has rate reset features. If you think we will see rising rates, which is a good assumption, then they will ratchet their rates up to keep up with rising interest rates. These are not government bonds, and there is some risk. However, with 4% dividend rates, there is an attraction there. If rates rise, it does participate and offset some inflation.

E.T.F.'s

DON'T BUY

Pays a 4+% dividend. Preferreds are susceptible to changing in interest rates. This is a rate-reset, so even if interest rates rise, ZPR can reset its payout. Generally, he doesn't like preferreds, and would rather buy covered calls which pays a slightly higher return.

E.T.F.'s

SELL ON STRENGTH

Doesn't see a whole lot of upside from here. Has had a good run and has been selling into the run. The next big move from the BoC will be a rate hike than a cut. With 5 year rates still low, the reset market is not a big challenge.

E.T.F.'s

COMMENT

The ETFs are better to go because of diversification. There is a little more upside but not a whole lot more. There will not be increases in interest rates any time soon. Rates shouldn't go much lower either. The rates should remain stable.

E.T.F.'s

COMMENT

We have recovered from a market perspective so it is natural that the ETF moves. Interest does not move as much and he believes the 5 years is anchored. He would not expect a big change in distributions for the time being. You will see some stability and creeping back.

E.T.F.'s

DON'T BUY

It is a rate reset ETF of preferred shares. As interest rates have fallen to probably the lowest level, the yields are pretty good. He would prefer to sell calls against the banks, collecting the dividend along the way. He is not a fan of preferreds.

E.T.F.'s

COMMENT

Preferred shares? This is indicative of high yield investments that act as equity when the market is under duress. ZPR is an example that is down 35% for the year. The global bailouts amount to $12 trillion and this is driving interest rates down to zero. Rate resets that use these long term rates to set the dividend will cause them to fall in value.

E.T.F.'s

COMMENT

A lot of the preferreds have moved to reset preferreds. Preferreds are not as defensive as they were historically. They are not as low risk as people traditionally think.

E.T.F.'s

COMMENT

Many people are looking for income. This pays a 6% yield. (See his top picks later.)

E.T.F.'s

COMMENT

Good ETF. Interest rates going down affects it as many of the underlying are rate resets. He doesn't like preferreds that much in the sense that you get return of a bond with a risk of stocks. He prefers capital growth.

E.T.F.'s

HOLD

He likes this and ZPR-T, but in general is not a big fan of preferred shares as he feels they have the yield of bonds and the risk of stocks. He holds it as a partial position, but does not view it as a good place to park cash. The yield on HPR-T is over 4%.

E.T.F.'s

BUY

ZPR-T vs. ZWC-T vs. ZWU-T. He likes ZWU-T and ZWC-T for the covered calls. ZPR-T is reset preferreds. They reset. There is an expectation that BOC will be less aggressive with interest rates so we are seeing pressure on these. The lower it gets the more he likes it. He feels it will appreciate next year.

E.T.F.'s

BUY

There used to be perpetual preferreds that did poorly when bonds went up. He does not see a lot of growth here. He has been trading it. He trades a range. He prefers the indexed strategy to going into specific preferreds. HPR-T is an alternative he prefers.

E.T.F.'s

COMMENT

ZPR-T vs HPR-T? Preferred shares in Canada are subject to resets, so they’re a great thing when interest rates rise. But when rates go down, they get creamed. It’s unlikely that rates will go down anytime soon. ZPR-T is laddered, and very short term and floating rate. Not a bad strategy. A better strategy would be HPR-T, which is actively managed by Fierra a fantastic manager in the fixed income space. The price on HPR-T is kinda in the same category as ZPR-T but you get the advantage of Fierra without paying a lot. Prefers HPR-T to ZPR-T.

E.T.F.'s

Showing 1 to 15 of 67 entries

BMO S&P/TSX Laddered Preferred(ZPR-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for BMO S&P/TSX Laddered Preferred is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO S&P/TSX Laddered Preferred(ZPR-T) Frequently Asked Questions

What is BMO S&P/TSX Laddered Preferred stock symbol?

BMO S&P/TSX Laddered Preferred is a Canadian stock, trading under the symbol ZPR-T on the Toronto Stock Exchange (ZPR-CT). It is usually referred to as TSX:ZPR or ZPR-T

Is BMO S&P/TSX Laddered Preferred a buy or a sell?

In the last year, there was no coverage of BMO S&P/TSX Laddered Preferred published on Stockchase.

Is BMO S&P/TSX Laddered Preferred a good investment or a top pick?

BMO S&P/TSX Laddered Preferred was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO S&P/TSX Laddered Preferred.

Why is BMO S&P/TSX Laddered Preferred stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BMO S&P/TSX Laddered Preferred worth watching?

0 stock analysts on Stockchase covered BMO S&P/TSX Laddered Preferred In the last year. It is a trending stock that is worth watching.

What is BMO S&P/TSX Laddered Preferred stock price?

On 2023-01-30, BMO S&P/TSX Laddered Preferred (ZPR-T) stock closed at a price of $9.56.

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BMO S&P/TSX Laddered Preferred (ZPR-T)

TSE:ZPR

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BMO S&P/TSX Laddered Preferred(ZPR-T) Rating

BMO S&P/TSX Laddered Preferred(ZPR-T) Frequently Asked Questions

What is BMO S&P/TSX Laddered Preferred stock symbol?

Is BMO S&P/TSX Laddered Preferred a buy or a sell?

Is BMO S&P/TSX Laddered Preferred a good investment or a top pick?

Why is BMO S&P/TSX Laddered Preferred stock dropping?

Is BMO S&P/TSX Laddered Preferred worth watching?

What is BMO S&P/TSX Laddered Preferred stock price?

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BMO S&P/TSX Laddered Preferred (ZPR-T)

TSE:ZPR

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO S&P/TSX Laddered Preferred(ZPR-T)

BMO S&P/TSX Laddered Preferred(ZPR-T)

BMO S&P/TSX Laddered Preferred(ZPR-T)

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BMO S&P/TSX Laddered Preferred(ZPR-T)

BMO S&P/TSX Laddered Preferred(ZPR-T)

BMO S&P/TSX Laddered Preferred(ZPR-T)

BMO S&P/TSX Laddered Preferred(ZPR-T) Rating

BMO S&P/TSX Laddered Preferred(ZPR-T) Frequently Asked Questions

What is BMO S&P/TSX Laddered Preferred stock symbol?

Is BMO S&P/TSX Laddered Preferred a buy or a sell?

Is BMO S&P/TSX Laddered Preferred a good investment or a top pick?

Why is BMO S&P/TSX Laddered Preferred stock dropping?

Is BMO S&P/TSX Laddered Preferred worth watching?

What is BMO S&P/TSX Laddered Preferred stock price?

Latest Buy Signals

Today's Top Picks

Popular Articles

Latest Sell Signals

Most Recent Experts

Andrew Moffs

Stockchase Insights

Jim Cramer - Mad Money

Eric Nuttall

Paul Harris, CFA