Personal Finance

How would you best invest 30K for 5 years?

  • Last Updated:
  • Sep 15th, 2010 7:50 pm
Newbie
May 11, 2009
28 posts
3 upvotes
charliebrown wrote: I'm sorry, i don't like paying MERs to fund managers to match the index...the "tons" of stuff reference were specific companies that i follow; look at charts of Canadian banks if you want specific examples; the resource companies like Teck & Sherritt were almost 10bangers; but that's the power of hindsight
Those are highly speculative, junior mining stocks. He is talking about Mutual Funds.
BAM.PR.N (annual dividend 1.1875; closed @ 19.80; yield = 5.997%; can be redeemed @ $25 after 2016
Rated: Pfd-2 (low) - Call Date 30-Jun-2016 - YTM ~10%
MFC.PR.C (annual dividend 1.125; closed @ 18.35; yield = 6.13%; can be redeemed @ $25 after 2015
Rated: Pfd-2 (high) - Call date 19-Mar-2015 - YTM ~12%
SLF.PR.C (annual dividend 1.1125; closed @ 18.92; yield = 5.88%; can be redeemed @ $25 after 2015
Rated: Pfd-1 (low) - Call date 31-Mar-2015 - YTM ~11.5%

2 of your Preferreds are highly speculative. And none of them will double your money in 5 years. The maximum you can get is 1.6 * 30K = 48K with Manulife (MFC.PR.C) which just cut their dividends on common stock.

"Preferred shares rated Pfd-2 are of satisfactory credit quality. Protection of dividends and principal is still substantial, but earnings, the balance sheet, and coverage ratios are not as strong as higher rated companies."
Deal Fanatic
User avatar
Dec 21, 2005
5865 posts
1672 upvotes
London, ON
MyLifeInBrampton wrote: Those are highly speculative, junior mining stocks. He is talking about Mutual Funds.
Hence why they were able to go up almost 1000%...and i don't think you can say Teck is junior...speculative, yes
Rated: Pfd-2 (low) - Call Date 30-Jun-2016 - YTM ~10%



Rated: Pfd-2 (high) - Call date 19-Mar-2015 - YTM ~12%



Rated: Pfd-1 (low) - Call date 31-Mar-2015 - YTM ~11.5%

2 of your Preferreds are highly speculative. And none of them will double your money in 5 years. The maximum you can get is 1.6 * 30K = 48K with Manulife (MFC.PR.C) which just cut their dividends on common stock.

"Preferred shares rated Pfd-2 are of satisfactory credit quality. Protection of dividends and principal is still substantial, but earnings, the balance sheet, and coverage ratios are not as strong as higher rated companies."

Thanks for running the YTC calcs :)
I'm hoping these Pfd-2 companies don't disappear...coz the last time i checked, the dividends on the preferred haev to be paid out before the common shares get theirs
💡😃😂😄
Newbie
May 28, 2008
24 posts
Canada
This thread has developed very well. I really appreciate all your valuable insights. Some folks on here are very well informed!!!

Thanks alot everyone! :) ;)

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