SLF Preferred Shares 4.45% Perpetual (SLF.PR.D-T)

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%

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%