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stock that pays at a guaranteed rate based on the interest rate?

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  • Jan 5th, 2023 3:46 pm
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Deal Addict
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Feb 3, 2005
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Georgetown

stock that pays at a guaranteed rate based on the interest rate?

With interest rates up, I'm wondering what publicly traded options exist to simply lock in a fixed return? I came across an article that unfortunately I only skimmed and then lost track of talking about how money is flowing into these types of vehicles - and it mentioned something paying 4+%. It would be beneficial to make that return as a capital gain instead of interest, so I'm wondering what the best options is to buy for this approach.
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Dec 21, 2005
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London, ON
Tiberius wrote: With interest rates up, I'm wondering what publicly traded options exist to simply lock in a fixed return? I came across an article that unfortunately I only skimmed and then lost track of talking about how money is flowing into these types of vehicles - and it mentioned something paying 4+%. It would be beneficial to make that return as a capital gain instead of interest, so I'm wondering what the best options is to buy for this approach.
There are a handful of Canadian companies (BCE, Bombardier and BAM) with preferred shares where the monthly amount is linked to the prime rate
:idea: :) :lol: :razz: :D
Deal Guru
Feb 9, 2006
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Brampton
No one can offer a guaranteed rate of return. That would be the hottest thing ever. Only thing coming to mind is like a DBPP.

A rate that's indexed to something sure.
Deal Addict
Aug 16, 2015
1163 posts
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Purpose high interest savings etf is what i buy
Deal Addict
Aug 16, 2015
1163 posts
486 upvotes
tebore wrote: No one can offer a guaranteed rate of return. That would be the hottest thing ever. Only thing coming to mind is like a DBPP.

A rate that's indexed to something sure.
Well this is completely false. Even cashable gic is 4% now.
Deal Fanatic
Sep 23, 2007
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Isn't this just called a GIC? Oaken pays 5.25% for 1 year and Saven pays 5.30%.

When these rates exist, I wouldn't bother looking for any other guaranteed options. These rates exceed or are on par with safe blue chip stock dividends.
Deal Guru
Feb 9, 2006
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Brampton
kilburn305 wrote: Well this is completely false. Even cashable gic is 4% now.
Sorry I forgot to add the term "indexed to inflation".

No one can offer a guaranteed rate of return indexed to inflation. That would be the hottest thing ever. Only thing coming to mind is like a DBPP.

Outside of government DBPP I honestly cannot think of any.
Sr. Member
Mar 12, 2017
764 posts
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kilburn305 wrote: Purpose high interest savings etf is what i buy
Me too, I rather have 4.75% and be able get my money whenever I want than lock it for 1 year at 5.25%.

Both is a bet that the market is going to be bad short term, but I personally want access to my money if the market goes down another 15-20% from here.

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