Ranking Table Column Information

Use this page to find definitions of all the column used in our ranking tables. Ranking Table Column Information should be used to understand what each column in the represents. Thus allowing you to better use the information presented. If you find any of the description are not clear please contact us so we can review and update the descriptions.

When reviewing the data please keep in mind the following.

  1. All data is based on last nights closing values.
  2. We update the Model at least once a day between 17:00 and 22:00 for the premium site only.
  3. New features are added daily and existing functionality is refined as needed.
  4. This is a dynamic model and the ranking results will vary daily as determined by the market action.

Definitions – Ranking Table Column Information

Symbol

  1. Stock Symbol as used by Google finance.
  2. Stock Symbol as used by TMX
  3. ISIN Number where available

Price

Price of stock as of  last closing.

52 Week High

Highest closing price for this stock for the year.

52 Week Low

Lowest closing price for this stock for the year.

Fixed Rate Base

The return yield as defined in the prospectus of this stock. For example:

  1.  5yr + 2.66% : rate is set based on the Government Of Canada 5yr bond + 2.66. If the 5yr is 2% the total rate is 4.66%
  2.  5yr MIN 5% + 3.80%. rate is the highest of the 5yr GOC bond plus 3.80% or 5.00%.
  3. NEGATIVE_SPREAD(>=80% OF 5YR RATE <=100%) at least 0.27%.  This represents the total yield offered. In this case the full yield is a percent of the 5Year rate.  I have marked it as NEGATIVE_SPREAD because the resulting yield is by definition a portion of the full 5year rate. In this case its only 80%. This is a 20% negative spread to the 5 year rate.  I have only seen this structure with BCE preferrreds only. The system treats these securities as 5 year resets with a Negative_spread (Instread of adding a spread onto the 5year rate we subrtact from it ).
  4. FLOATING(>=80% OF PRIME RATE <=100%). The rate is calucated montlhy/quarterly and is based on PRIME. Again this the total yield offered by the security and is a discount of the PRIME RATE. In this example the next dividend will be based on the 80% of the prime rate and is determined by the company a number of days before as described in the prospectus. Some of the BCE, Brookfield and Power Financial. You can see the complete list  at list-of-floating-rate-preferred-stocks

 

Current (Yield | Dividend)

Represents the yield and dividend for the current issue based on last night’s closing stock price. The yield fluctuates with stock price. The dividend is fixed for the current period.

Reset (Yield | Dividend)

Represents the yield and dividend for the current issue after the upcoming reset. For this calculation it’s assumed the key rates are going to be the same as today’s published rates. The reset yield is the sum of the key rate for the base term (5YR, 3Month, etc) plus the published spread.  Since we do not know what the key rate will be at the time of the reset we assume its going to be the same as today. The ability to use a different set of rates during this caclulation is planned for a future release. 

Blended (Yield | Dividend)

This is a “What If” scenario. It represents the blended yield and dividend for the current issue. It should only be used as a reference. It is not meant to show actual returns for Yield/Dividend. This metric has merit only when applied across all issues being considered.  To calculate the blended values the model makes the following assumptions.

  1. The period used is 5 years. Some based on the Current Yield and the rest based on the Reset Yield.
  2. 20 dividend payments are used for quarterly and 60 for monthly.
  3. Assumes you hold prior to the Ex-Dividend date.
  4. Within the 5 years yield and dividend will reset at most once, on the reset date.
  5. Dividend till reset date is known and fixed, as shown in column “Current (Yield|Dividend)“. Dividend from reset date and for the remainder of the 5 year term period is a projection based on.
    1. 5YR GOC rate is assumed to be the same as today’s rate. The “Reset Scenarios Based on Various G.O.C. 5 Year Bond Yield Rates”  tool, shows an additional 5 variations of the blended rate based on 5 different “5YR GOC” rates.
    2. New dividend = $25 * ( 5YR GOC + shares additional rate). Same as shown in column “Reset (Yield | Dividend)
  6. The Blended Yield is calculated as follows
    1. PreResetDividendAmount = sum of all dividends from now till reset date based on current dividend.
    2. PostResetDividendAmount = sum of all (projected)dividends from reset date till the end of the current 5 year period.
    3. Total5YearDividendAmount = PreResetDividendAmount + PostResetDividendAmount.
    4. Blended yield = (Total5YearDividendAmount / today’s share price) / 5
    5. Blended dividend = Total5YearDividendAmount / 5

Blended Rate metric should be used when comparing how a share is expected to perform in the next 5 years under a predefined “What If” scenario. Allows you to project performance of shares in uniform so picking the one with best expectations is more clear. It can be used to hi-lite how the current issue will perform relative to it’s peers. We present  a total of 6 variations of “Blended (Yield/Dividend)” metric based on 6 different “5YR GOC” rates.

Please review the comments below for additional information on this metric.

Reset Date

The date of the upcoming reset for this issue. During the reset the new dividend will be determined by the issuer as outlined in the prospectus. 

Rate Increase ( percent| to value )

This reflects the effect or the current price on the issue rate of the preferred.  In column “Fixed Rate Base” you see the issue rate. Here you see the effective new rate of the share due to its drop or rise of its share value. The second part in this column shows the percent increase/decrease of the new rate.  A detailed explanation of this metric is presented in How To Find Undervalued Preferred Stocks

In the premium version this metric has been taken apart. Two column are used one for the percent and one for the value. This way you can now sort the table on ‘Rate Increase Value’ or ‘Rate Increase Percent’

New Spread (%Increase | value)

This reflects the effect or the current price on the issue spread of the preferred.  In column “Fixed Rate Base” you see the issue spread. Here in the second part you see the effective new spread of the share due to its drop or rise of its share value. The first part in this column shows the percent increase/decrease of the new spread.  A mored detailed explanation of this metric is presented in How To Find Undervalued Preferred Stocks

In the premium version this metric has been taken apart. Two column are used one for the percent and one for the value. This way you can now sort the table on ‘New Spread Value’ or ‘New Spread Percent’

Additional Features

Displays codes for additional feature of the preferred share

  1. Cumul – Share is Cumulative
  2. Non C – Share is Non Cumulative.
  3. DTCEPI – DividendTaxCreditEligibilityPotentialIssues – Distribution may consist of a combination of dividend, income and return of capital and therefore may not be entirely eligible for the dividend tax credit. Please consult a tax professional for further information.
  4. ACTSWHC – Automatic Conversion To Common Stock Up On Occurrence of a Trigger Event Without Consent of Holder.

Metric only available in the Premium Version.

Years To Double Initial Investment

How many years will it take for the initial investment to double. This is a simple calculation based on the following assumptions.

  1. The rate used for all years, in the calculation, is based on the “Current (Yield | Dividend)”.
  2. Dividends are re invested annually at the end of the year. And the purchase price of the units is same as the current price “Price”
  3. No Increase / decrease to the share price. Not a likely scenario but for this metric we have to assume the share price remains unchanged.

For perpetuals this calculation is quite close to what you can expect, if you could re invest the dividends into the same issue at a price close to the current price.  For resets and floating issues this is not going to be anywhere close to reality. Just use this as a reference only. Its the same formula used to show the power of compound interest. In this case, Instead of interest we use the dividends. 

P/E Ratio

Common Stock Price to Earning Ratio

Market Cap In Billions

The company Market Cap.

P/B Ratio

Common Stock Price to Book Ratio.

Available in Premium Version Only.

Common Stock Yield

Common Stock Dividend Yield.

Available in Premium Version Only.

Name

Full name of the preferred as found in the prospecuts. 

4 Comments

  1. Frank

    Your website is very informative.
    My observation on the blended rate is I feel it is not reliable, so its use must be very careful.
    1. The current market price is very important, the lower the better because it can affect the issued rate to make the yield higher.
    2. The other important is the reset date if you like the current yield, then the further date the better.
    The blended rate is to predict what will be the yearly dividend rate until the reset date and 5 years after the reset date. The rate is not very reliable because it is based on the following assumptions:
    1. 5-year GOC remains as the current rate.
    2. The market price of the share remains the same as today’s price.
    PostResetDividendAmount = til the current 5 year period should be changed to the next 5 year period.
    Total5YearDividendAmount should be changed to TotalPreReset + PostReset
    Blended yield =Total5YearDividendAmount/today’s share price)/5 should be changed as follows:
    Yearly Blended yield = TotalDividendAmount/(Resetyear – 2019 + 5)

    I did the MFC-O calculation on the blended dividend as follows using the website figures on December 30th, 2019 as follows, which matches the dividend % in the table.
    ($1.4 x 2 + $1.61 x 5)/7 = $1.55 (matches)
    1.55/25.75 = 6.02% (The table has 6.04%.)
    Because of the above reason, if investors are happy with the perpetual dividend rate, they should go for perpetual shares but purchase as low as possible.

    For the Reset shares, because the blended rate is not reliable, so investors should try to look for the current rate which is as high as possible (If the current dividend rate is much higher than the issued rate, then very likely it means the current share price is much lower than the issued price.)
    Use the blended rate only as a reference.

    Reply
    • AAlex

      Frank Thank you for taking the time to review and verify the formula.

      I agree this metric should only be used as a reference. We do not know what the reset yield will be, hence the “Blended (Yield | Dividend)” can only be a reference. This metric, only has merit once applied across all the issues being compared.

      Changing the calculation as you propose will result in the metric being heavily weighted on the reset yield (The Unknown portion). My intention for this metric is to project the next 5 years only and keep the balance between current and reset yields.

      Reply
  2. Brian

    Hi,

    This website is very informative. Based on your metrics, the bip.pr.a looks so cheap in comparison among all other BIP series. Is that the case, or there are more things need to be considered.

    Thanks

    Brian

    Reply
    • AAlex

      Hi Brian,
      Only when considering BIP issues, BIP-A will likely be yielding about 7% come June when it resets in a couple of months. So for the next 5 years you will be getting the 7%.
      If in 5 years the 5YR today at 0.44% goes up say to 2% you would have made a killing on the capital gains and the dividend. On the other hand if rates go negative this would have been a bad choice especially since all the other BIP issues have at least a 5% minimum reset.
      In other words if you think rates will be up in 5 years then BIP-A is the best choice. If you think rates will be negative then BIP-K is the best option.
      Thanks…Alex

      Reply

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