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First things first, my weekly round (which is really bi-weekly these days) will be more focused on Dividends and Investing with a dash or randomness if I find it pertinent. I was always a little more focused on dividends as I really have more times to give attention to those blogs over others.
Top Canadian Personal Finance Blog Nomination
I am always humble to be nominated and its always thanks to my readers. Without you, there wouldn’t be a blog. Over at Modest Money, I was nominated as a Top Canadian Finance Blog and I would love it if you could take some time to vote for me 
It takes only a minute – click the link, scroll down the list and click “The Passive Income Earner”.
Preferred Shares
I don’t know if you read the news about Apple mulling over having preferred shares with something like a 4% yield and with their cash balance, it sounds like it would be a great opportunity for investors - especially for those nearing retirement.
Preferred shares are definitely going to have a part in my portfolio but that’s going to be closer to my retirement timeline. I have been building my portfolio for growth and income and over time I will balance it with preferred shares and bonds. I have not done my full portfolio strategy, unlike my RESP strategy, since I am still years away and I will not be using my age for bonds allocations either. Look for a post in the future about my allocation strategy over time. My current allocation target is outlined @ How To Rebalance a Stock Portfolio.
If you could take a moment to share your plan around preferred shares, I would love to here it.
Loading ...Worthy Readings
Some weekend reading to share …
- Canadian Finance Blog with ‘The Commission-Free ETF Revolution‘
- Boomer & Echo with ‘Learn From The Boomers’ Mistakes‘
- Canadian Couch Potato with ‘A Monte Carlo Case Study: Can I Retire Early?‘
- Dividend Growth Investor with ‘Most Widely Held Dividend Growth Stocks‘
- Dividend Ninja with ‘RRSP and TFSA Strategies You Can Take to the Bank‘
- Dividend Monk with ‘The Comprehensive Guide to Index Funds‘
- Dividend Guy Blog with ‘The Ultimate Guide to Finding Double Digit Dividend Growth Stocks‘
- Freedome 35 with ‘Fiscal Update – Jan 2013 – New Year Bump‘
- My Own Advisor with ‘What is Dividend Investing? Why Should You Do It?‘
- Retire by 40 with ‘AShould you invest in Target Date Funds?‘
Carnivals
Here are the carnivals I was present in the last two weeks.
- Carn. of Financial Camaraderie at Financial Conflict Coach
- Yakezie Carnival at The Amateur Financier
- Carnival of MoneyPros at Money Pros
- Y and T’s Weekend Ramblings at Young and Thrifty.ca
- Carnival of Retirement at See Debt Run
- Finance Carn. for Young Adults at Master the Art of Saving
- Yakezie Carnival at Faithful With a Few
- Carnival of MoneyPros at The Ultimate Juggle
- Carnival of Retirement at WorkSaveLive
I was following the story too about the activist shareholder putting pressure on Apple. I don’t know a whole lot about preferred shares but I think if they’re distribution is still paid out as dividends then I would prefer owning them over bonds for tax reasons. Thanks for the mention. Enjoy the family day weekend
Liquid recently posted..Weekend Business and Blog Roundup – Feb 8th
@Liquid
I would probably have a mixed of both over time.
Thanx for the mention PIE!
I am also thinking of shifting some of my fixed-income into preferred shares. They are far and few between with TD Waterhouse however. While PFs are not bonds one usually gets their $25 back per share IF the PF is called back (right?). What’s your expereince with that PIE?
Cheers
@Dividend Ninja
I don’t have a lot of experience personally but my parents do. Many preferred shares (often from banks) can guarantee the purchase price of the original offering price. The catch is that they often buy back early these days due to the low interest environment.
The trick to buy early is to follow the offerings with your discount broker.
[...] Weekly Dividend Round: Preferred Shares Anyone? on The Passive Income Earner [...]
I was thinking as part of fixed-income to buy XPF. What do yuo think about this one?
I don’t really understand why apple would issue preferred shares and raise even more cash. I won’t be buying any preferreds at this time. I think they will behave like bonds – value will go down when interest rates go up. I’d rather buy apple now at 2.3% and with a few div increases I’ll be over 4%, whereas with the preferreds you are locked in.
[...] from your investment and diversifying your portfolio. I started discussing it briefly in my recent weekly dividend round to touch on the point that Apple has been discussing the offering. Just recently, PWF issued [...]