Brookfield Renewable Power Pref (BRF.PR.E-T)

(A Top Pick Sept 30/13. Up 14.64%.) This is for the longer term investor. Still likes this one. Feels it has a lot more to go.

Does not like it. Non-investment grade.

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. 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.

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.