Canadian Preferred Shares To Buy Before The Expected Bank of Canada Rate Cuts Trigger FOMO

Summary

• Preferred shares of Enbridge and other select Canadian utilities and infrastructure companies are expected to perform strongly over the next 6 to 12 months.
• The Bank of Canada will likely cut interest rates for the first time on June 5th or July 24th, creating an opportunity to invest in fixed dividend preferred shares that could trigger FOMO.
• After reset, dividends paid by preferred shares of Enbridge Inc., ENB.PR.Y:CA and ENB.PF.A:CA, will increase by 54% and 41.2%, respectively.
• Select preferred shares of TransAlta, AltaGas, TC Energy, Pembina Pipelines, and Fortis are also due to reset their fixed dividends over the next six months, which would result in significantly higher dividends for the next 5 years.

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Investment case for preferred shares Canadian companies due for dividend resets over the next 6 months

I expect preferred shares of Canadian utilities and infrastructure companies to perform strongly over the

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ENB:CA, TRP:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.