Hi everyone,
Basic question: could someone please explain dividend, yield, dividend yield, and rate reset so I can decide what to buy? I usually buy index, but I have a bit of extra money I'm considering investing in something different, like FFH preferred shares. How on earth do you pick one?
Fairfax Financial Holdings Limited ("Fairfax") (TSX:FFH)(TSX:FFH.U) announces that it has declared the following quarterly dividends per share on its preferred shares:
Series of Preferred Shares Dividend (C$) Payment Date Record Date
Series C 0.286125 December 30, 2016 December 16, 2016
Series D 0.22825 December 29, 2016
Series E 0.18188 December 30, 2016
Series F 0.16654 December 29, 2016
Series G 0.207375 December 30, 2016
Series H 0.19147 December 29, 2016
Series I 0.23175 December 30, 2016
Series J 0.20955 December 29, 2016
Series K 0.3125 December 30, 2016
Series M 0.296875 December 30, 2016
Applicable Canadian withholding tax will be applied to dividends payable to non-residents of Canada.
Fairfax has also determined the quarterly dividend rates in respect of the December 30, 2016 to March 30, 2017 dividend period for its floating rate preferred shares. The rates, together with the dividends per share payable for such period (if and when declared), are set forth below:
Series of Preferred Shares Rate (%) Annualized Rate (%) Dividend (C$)
Series D 0.91225 3.65901 0.22806
Series F 0.66542 2.66901 0.16636
Series H 0.76515 3.06901 0.19129
Series J 0.83745 3.35901 0.20936
How do you decide which one to buy? I started falling down the rabbit hole, trying to figure out rate reset, compare different funds, and ended up confused.
If you can point me in the right direction, I'd be grateful.
I did find this helpful:http://web.tmxmoney.com/quote.php?qm_symbol=FFH.PR.k vs.
http://web.tmxmoney.com/quote.php?qm_symbol=FFH.PR.c because at least at the bottom, they compare dividend and yield. Should I just go through every one and pick the highest dividend and yield? So far, K is winning.
Thanks!
Melissa