You weren’t the first one to come up with that investment idea, Buffett’s favourite number, and TSX stocks that have cut dividends

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You weren’t the first one to come up with that investment idea, Buffett’s favourite number, and TSX stocks that have cut dividends GlobeInvestor

) for free daily and weekly newsletters, in-depth industry coverage and analysis, and access to ProStation - a powerful tool to help you manage your clients’’ portfolios.: The yields on preferred share exchange-traded funds look very appealing. The BMO Laddered Preferred Share Index ETF , for example, yields about 6.7 per cent, and the iShares S&P/TSX Canadian Preferred Shares Index ETF yields about 6.1 per cent. Do you think their dividends are sustainable?I’m skeptical.

We saw this the last time government bond yields went for a skid. ZPR, for example, was paying 5.3 cents a month in dividends at the start of 2014. By September of 2017, ZPR’s monthly payout had dropped to 3.5 cents – a 34-per-cent haircut.

 

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